Is it time to change your investments advisor?
Here's a transcript of my latest conversation with our media consultant this week.
Q: Richard, when does one know when it?s time to change their investments adviser?
Richard Crenian: You know, sports and business are so intertwined. I live in Toronto and one of our offices is in Calgary. Yesterday at around noonish in Toronto, the Toronto Maple Leafs hockey team announced that it was trading a bunch of players to Calgary and Calgary was trading a bunch of players to Toronto, with the idea that it would shake up the team. What happens is, by trading off players and bringing in new players, it sometimes brings new blood into the team, so that the teams have a different approach, a winning approach to playing the game and winning also brings about one important thing, is that the clubs make money. So ideally if sports is business and clubs are there to make money, they?re there wanting to shake up staff to allow themselves to win and make money.
While it?s funny that we don?t realize the kind of approach we have towards our investment advisors. Because they are stockbrokers, we?ve gone through the whole gamut where we?ve lost a bunch of money and now the mutual funds where a lot of people are invested in have started creeping back but not quite to the levels that we lost those big numbers at. So everybody sings the same tune, everybody tells the same thing. What is it about that one special adviser that you need to listen to or go to and every time you sit down with your investment adviser, they tell you the same story that six hundred other advisors tell you about. And the thing is you are always looking for a winner because the investment adviser is giving you advice today isn?t making you money. He is not the guy risking his own money and so if he gives you bad advice, a wrong advice or market advice or some advice that his economists or his staff has told him to give you, then, then maybe it?s time you should be looking at a new investment adviser, someone that will be able to give you different kinds of products. You know if you are only used to stocks and bonds and mutual funds, and there?s an opportunity for you to diversify. You?re a stockbroker there sitting there isn?t telling you to go buy this other product cause he is not making commission doing so.
Anybody can be an investment adviser today. Everybody says that "I am an expert at this", "I?m an expert at that", when in reality they are an expert at making money for themselves. What about making money for you as a client? If you?re really bogged down with the same story that you hear, you read every paper and you hear the same story and you?re tired of it, it?s time to look for somebody new.
Economists. I had a breakfast with the economists that works for a big investment adviser, a wealthy investment company in Toronto one day, and they were telling me that a, a story and I turned around and I said, ?Listen, I appreciate what you?re saying, how you?ve framed the economy, where it?s going and stuff. What products are you selling today?? So he was telling me what kinds of products he was selling and his conversation of what he told me was framed completely to sell his product. So a lot of times when you hear an investment adviser who is giving you advice, it?s because they have hired guns on staff to give you advice to buy their product.
Here it is, here is the rent roll. We say here?s what you look at, here?s the cash flow you can expect to get and you know, you can expect to get it. We, we tell you the good, the bad and the ugly. If everything goes well, this would be the your returns, if it doesn?t go well, we can tell you. We?ll tell you too. We don?t like to tell you bad news, if a tenant leaves or whatever, but that?s the reality of the day. We?ll replace, we?ll replace the tenant. Sometimes it takes longer, sometimes it doesn?t take as long but you know I think, you need to have somebody telling you the good, the bad, the ugly. We?ve got nothing to hide. So if your investment adviser telling you that everything is great, everything is better, buy gold, buy silver or buy everything else, find out what products they are selling. And if they are selling the products they are harping about, that?s the time you change investment advisers.
Meanwhile, go to our website and you?ll be able to see the products we are selling and you make up your own mind. If you think we are selling good products, come buy from us. If you think we are selling junk, don?t even bother calling us cause, you know what, we don?t want to be there, if, if you think we are selling junk. We just want to be able to sit down and have a heart to heart talk to you. We?ll explain to you our position and if it sounds like we are making sense, come talk to us. If it doesn?t then you know what, no worries at all. We understand and we?ll both carry on.
Call Howard at 4036304544 or email him at firstname.lastname@example.org, or write me if you have any thoughts you would like to share.
Thank you for reading.