Upload
ashley-fitzgerald
View
219
Download
3
Embed Size (px)
Citation preview
www.investinknowingmore.ca
Investing 101 – Part 2
Working With Financial Professionals
www.investinknowingmore.ca
Who am I and why am I here?• NBSC– Crown corporation– Protect investors and foster capital
markets
• Marissa– BBA (E-com)– 6 years with the NBSC– I’ve made $$ mistakes too
www.investinknowingmore.ca
Financial Advisers - Expectations• What DON’T they do?– Predict market performance with certainty– Recommend investments that are always
profitable– Act on vague instructions– Meet unrealistic goals
• What DO they do?– Make clear and specific recommendations – Explain the reasons for the
recommendations – Point out the strengths and weaknesses of
opportunities and recommendations – Outline the risks involved
The term ’financial adviser’ includes: securities dealers; advisers; dealing representatives; advising representatives; or other registrants.
www.investinknowingmore.ca
Financial Advisers – How to choose?1. Decide what kind of help you need
• How much advice do I need?• How experienced am I?• How much am I planning to
invest?
www.investinknowingmore.ca
Financial Advisers – How to choose 2. Ask around
• Make a short list• Check registration• One size does not fit all!
www.investinknowingmore.ca
Financial Advisers – How to choose3. Set up a meeting
• Screen over the phone• Meet in person• Ask questions.
www.investinknowingmore.ca
What to ask?
• Are you and your firm registered with the NBSC?
• Registration tells you:– The type of products or services they
are qualified to sell or provide advice on.– That they are properly qualified and
meet a certain standard.
www.investinknowingmore.ca
What to ask?
• What products and services do you offer?– Specialized–Wide range
• What level of services can I expect?– How often will we meet? – How will you update me?
www.investinknowingmore.ca
What to ask?
• How are you paid for your services?
– Salary (built into the products you buy)– Commission (on products they sell)– Flat fee (hourly rate or % of assets)– Combination
www.investinknowingmore.ca
Mutual Fund Fees
• Fees reduce your return– Sales Charges– Transaction fees– Account fees– Fund expenses
• A fund’s fees are described in the Fund Facts or Simplified prospectus disclosure documents
www.investinknowingmore.ca
Top 3 Costs - Loads
1. Sales Charges (“Loads”)– charged when you buy or sell units or shares of a fund.
1. Front-end Load / Initial sales charge2. Back-end Load / Deferred sales charge3. Low load / Low sales charge4. No load5. Fee-for-services
www.investinknowingmore.ca
Top 3 Costs - MER
• Management Expense Ratio (MER)–Measure of what it costs to operate a
mutual fund (expressed as a % of the fund’s value)
– Average 2.5% but varies depending on type of fund
– The higher the MER, the more the fund will have to earn in order for you to make money
www.investinknowingmore.ca
Top 3 Costs – Trailing Commissions• Paid each year to the company that
sold you the fund• Reflected in the MER • Ranges from 0.25% - 1.5% of the
value of your investment each year
www.investinknowingmore.ca
Your Responsibilities
• Be prepared• Ask questions and take notes• Be informed• Stay up to date• Keep your adviser up to date
www.investinknowingmore.ca
What if I have a problem?
• Step 1: Do I have a complaint?– Not registered– Conducts transactions without your
permission– Switches you from one mutual fund to
another without legitimate reason– Recommends unsuitable products based
on the information you provided
www.investinknowingmore.ca
What if I have a problem?• Step 2: Contact the adviser.– Clearly define the issue and outcome
you expect– Gather all relevant documents– Keep notes
• Step 3: Contact the firm.– Follow their complaint process
www.investinknowingmore.ca
Learn more!
• www.investinknowingmore.ca• Facebook.com/4NBInvestors• Twitter.com/4NBInvestors
• [email protected]• 1 866 933-2222