Questions Investors have about Advisory Relationships

These are some common questions we get here at Conscious Wealth!  Along with some thoughts to get you going down the right path.

1) How do I know I’m getting value from my financial advisor?  Start by asking, was I provided with a plan?  And do they initiate updates to it?

2) How do I choose a financial advisor?  Be sure to interview at least 3!  Ensure you seek references and check registrations and licensing.  The checks are quite easy with some basic guidance.
3) How frequently should I be evaluating / rebalancing my investments?  Most people should be reviewing this at least annually once your investments are setup appropriately.  Many advisors or self-directed investors either don’t rebalance, or they rebalance too often.  The worst form of ‘rebalancing’ is trading, which is especially detrimental in taxable accounts.

4) I just inherited some money. Where should I start?  Be sure to park at least some of it in a secure, high interest bearing option (ideally in a TFSA) until you have time to understand your choices.  Consider a fee-only advisor to guide you through some of the decisions you’ll need to make.

5) I want to learn to invest. What resources would you recommend?Conscious Wealth runs monthly workshops for those looking to increase their knowledge.  We can also provide names of books and websites to check out.  Learning about indexing is a critical part of the playbook for the modern investor.

Some of the more advanced questions we’ve received:

Why do I have to take more risk than ever before to get that average return?

Is the financial services industry / my advisor required to have my best interests at heart?

What mix of securities, mutual funds, and ETFs should I be using?  I heard mutual funds are bad.

Is it okay to be geographically concentrated in Canada if I have thoughtful diversification among sectors and industries?
Am I contributing to injustice through my investments, and if so, is there a way I can invest more ethically?
For further discussions around any of these, send us a note!
prosper@consciouswealth.ca
There is 1 comment
  1. Great advice, it can be a bit of a process to cover off all of those issues but also incredibly important in the long run. Worth the effort for sure.

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