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Phone: 709.634.4944

info@harbourfinancialgroup.ca

Corner Brook, NL

90 Broadway, A2H 4C8

Author: Harbour Financial Group

Vs. The Banks

Vs. The Banks

Over the past 2-3 years, all 4 of the Big Banks (BMO, TD, CIBC and Scotiabank) have been found guilty of overcharging clients on management fees associated with their Mutual Fund sales (see article below). The level of overcharging, misrepresenting compensation and fees, is disgraceful. Collectively, in the first quarter of 2017, the Canadian banks made over $10 Billion dollars. $10 BILLION! Canadian consumers deserve much better.

 

http://www.cbc.ca/news/canada/banks-misleading-clients-on-mutual-funds-1.1415027

 

The biggest mutual funds are largely with the banks, and this is causing some real problems for consumers.  When a mutual fund gets too big it becomes nothing more than an ‘index fund’, meaning that whatever index it tracks, it follows in performance. Funds with ~$10B+ in assets are no longer nimble, and fund managers can’t move into/out of equity of fixed income positions with the ease of other funds. The manager’s hands are effectively tied. There are two reasons why this is harmful;

1) The client thinks they have someone actively managing their money (They don’t).

2) The client is getting charged 2% or more per year for this ‘management’ when an ETF (Exchange Traded Fund) would do the same thing while only charging 1/10th the price. They’re getting ripped off. The chart below shows the cumulative effect of a 75 basis point (0.75%) difference in fees over the course of 30 years of investing. The difference to the client is staggering. A 1.5% or 2% difference in fees is outrageous.

 

I’m not sure if the people who work at the banks think about these things, or are even aware of it.

 

Being a competitor to the banks, we often hear different things from clients, regarding the banks. As an independent advisor I hear things like, “My bank rep says you charge higher fees” or even better, “You work on commission, they’re on salary”. These arguments are misleading to the point they’re funny.

 

Harbour Financial Group Advisors have access to thousands of mutual funds, from dozens of different mutual fund companies, and we will pick the right product for you. Being independent means we are not influenced by any commission driven sales, nor told by anyone to sell a certain product. We have the client’s interests at heart. It’s the reason we chose to be independent and the reason why our business keeps growing.

 

The best advice you can get from anyone is independent, uninfluenced, educated advice. Same goes for Financial Advice. We are a team of independent, highly educated, financial advisors who can help you plan for your financial future. Please contact us today to speak to one of our advisors.

– Geoff Wareham, B.Sc.

 

Mortgage Insurance versus Life Insurance


Have you ever asked yourself what the difference is between mortgage insurance and life insurance?  Let me tell you, the differences are great and they are something you need to know about.

How does this scenario sound?  You have been paying for mortgage insurance through your bank for many years, only to face a life altering change and find out that the bank denied your claim! Unfortunately, this happens more than you would care to think.

Here is a great write-up on the important differences you need to make yourself aware of when it comes choosing between mortgage insurance and life insurance.

See the article here: Mortgage Insurance versus Life Insurance

Mortgage Insurance versus Life Insurance

What Oil Prices Mean for Our Province

Wade Locke suggested this past fall that Newfoundland and Labrador loses between $20 to $25 million in revenue for every dollar that oil falls below the $105/barrel that the provincial government used as an estimate. At current prices, that means we lose approximately $875 MILLION dollars. I really want a new hospital in Corner Brook, and a big green energy hydro project at Muskrat Falls sounds great, but how can we possible afford this? Where’s the leadership to address these glaring issues? Someone please step up to the plate.

I know this article is only 2 months old, but we’re headed for big trouble – Read more on what Mr. Locke had to say.

 

What Oil Prices Mean for Our Province