.- Investors should find a trusted advisor to work with… good idea… the problem is, many of us don’t trust financial advisors, sometimes with good reason. Con-artists and ponzie schemes have ripped off governments, rookie and experienced investors alike for billions of dollars.
– In a report called “A Decade of Financial Scandals”, the Foundation for Advancement of Investor Rights (FAIR Canada) said, that as of 2009 an estimated 1.3 million Canadians had been the victim of financial fraud, and in many cases “investors lose a significant part of or their entire life savings”.
– The good news is that despite these alarming numbers this is the exception not the rule. Stats Canada’s numbers say there were 288,000 financial advisors operating in 2008, most have the best interest of their clients as a top priority. A happy client as far as they should be concerned is a sours of ongoing commissions and fees (not to mention referrals). We’re good for business.
– Despite some bad apples, evidence shows that working with an advisor pays dividends. the Investment Funds Institute of Canada (IFIC) published a report in 2010 called “The Value of Advice”, it found that those using an advisor have far more investable assets than those that don’t. Across all income levels. “Having advice is strongly associated with the accumulation of financial wealth regardless of income level or age of household” the report found.
My name is Phil and I’m a 59 year old professional who represents a pretty average Canadian worker thinking about retirement. I’ll be the first to say that “I don’t know much, but I am willing to learn”. Follow my posts here as I start the process of becoming “financially literate!