Frequently Asked Questions

"How do you get paid for investment advice?"

Most of my income derives from trailer fees, which are covered by each mutual fund's MER (Management Expense Ratio), which in turn is ultimately borne by the client.   Most trailer fees range from 0.25% to 1.00% per year, depending on asset class.

Although sometimes controversial in the media, trailer fees are an undeniably convenient way of paying for investment advice and monitoring, retirement number-crunching, and other things that don't come in a box.   Best of all, trailer fees align the advisor's interests with those of the client, by creating an incentive plan based on wealth creation and preservation as opposed to trading volume.

In some cases - typically for smaller or newer accounts - I may request additional "DSC" or "Low Load" sales commissions on the purchase of new long-term investments.   This does not cost the client out-of-pocket, however it does obligate them to keep the investment for a defined period of time, usually 2, 3 or 7 years.

"Why don't you sell stocks and ETFs?"

As a young stock broker I went on a quest for the perfect investment, using stocks, bonds, debentures, puts, calls, ETFs and just about anything else you can think of.   But the more creative the strategy on paper, the less practical it often proved in real life.   I came to realize that reinventing the wheel is overrated, and most people should simply hire an institutional money manager with a proven track record and be done with it.

Ironically my advanced investment background made me better at picking mutual funds.   Not just on their technical merit, but for how well they "fit" different investor personalities in real-world conditions.   I still haven't found the perfect investment, but I've found a system that gets the job done reliably and efficiently.

Do you have a question of your own?   Email and I'll be happy to address it!