Frequently Asked Questions

"How do you get paid for investment advice?"

Most of my income derives from trailing commissions, which are deducted from a mutual fund's unit value (along with other operating expenses) before performance is calculated.

Trailers are often portrayed as a "hidden" cost of investing, which is true if they're not disclosed properly.   But they're also a convenient way of bundling the cost of personalized advisory services with the raw operating cost of a mutual fund.   They also save steps at tax time, since they're pre-deducted from any reportable gains.   And perhaps most importantly, they align your advisor's interests with yours, ie: creating and protecting wealth as opposed to generating trades.   It's how investing should be.

Trailing commissions vary by asset class, but are typically 0.50% to 1% per year.   This revenue, minus dealer charges and other business overhead, forms the bulk of my personal income.

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

As a young, professionally-trained stock broker in the late 1990s I was on a quest for the perfect investment strategy. Stocks, bonds, options, ETFs, you name it. But what looked good on paper often fell short in the real world.   I came to believe that reinventing the wheel was overrated, and that most folks are better off entrusting their investments to an institutional money manager.

I still haven't found the perfect investment.   But I have found a practical system that gets the job done.   Reliably, efficiently, and professionally.

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

Don