Should I fire my advisor and invest by myself? + MORE Feb 11th

SPEED READER
Book: Stocks for Fun and Profit
Author: Herman VanGenderen
Publisher: Tellwell Talent
Sold by: Amazon digital services
Price: Hardcover, $65.71; Paperback, $33.92, Kindle Edition, $9.99
WHO IT’S FOR: Investors—both novice or experienced—seeking to learn more about investing on their own online or alternatively, those who want to build their investing literacy so they can work with an advisor to reach their goals quicker.
MORE SPECIFICALLY? Those who like to do their own stock investing as well as those who seek financial freedom in their lives. VanGenderem himself was born on a small dairy farm to Dutch immigrant parents and grew up in a large family with modest means who grew up to be a successful investor in both stocks, business, and real estate.
WHAT’S IT ABOUT: It’s an actual account by VanGenderem that follows his investment strategy from 2014 onward.
IS IT EASY TO READ? Some parts of the book are a bit complicated for the new investor but the bottom line is to start small and invest in some of Herman’s more tried and true stocks and over time branch out from there…

The Globe and MailReport quotes Trump questioning Israel's commitment to making peaceThe Globe and MailPresident Donald Trump speaks during a meeting in the Oval Office of the White House on Feb. 9, 2018, in Washington. Evan Vucci/THE ASSOCIATED PRESS. JERUSALEM. The Associated Press. Published 2 minutes ago Updated February 11, 2018. President Donald …With Gaza in Financial Crisis, Fears That 'an Explosion's Coming'New York TimesTrump warns Israel that settlements 'complicate' peace hopesBBC NewsIndia's Modi in UAE to Boost Ties with Gulf Arab StatesVoice of AmericaForward -CNN -The Hill -Al-Arabiyaall 98 news articles »

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Q. Bruce, I believe I am with a good and honest financial advisor.  On her recommendation, I hold low-cost mutual funds, with an MER below 1%.  My returns have averaged 6-8% annually over the past few years.  But I am wondering if I should consider moving into a self-directed investment account and selecting the very same low-cost mutual funds to avoid the 1% advisor fee? Is this a sound strategy? I am less than 3 years away from enjoying retirement. – Thanks, Janet C.
I am a big believer in making sure you get what you pay for, in all areas of life.  If you had told me you didn’t trust your financial advisor, were holding high-fee mutual funds and your returns were crumby, I’d be cheering you on as you made a change – either to a new advisor or a Do-It-Yourself approach.
But in your case, the opposite is true, making the question a more difficult one to answer.  The disadvantage to staying with your advisor is cost.  I’d look at your total portfolio size and calculate how much you’d save if you got rid of the 1% fee…

It is easy to see why Canadians are increasingly investing through Exchange Traded Funds (“ETFs”). In fact, Canadian ETF sales were up over 50% in 2017 bringing total outstandings to almost $150 billion. But why do millions of Canadian investors continue to stick with expensive mutual funds?  Because they trust advisors who are paid to sell only expensive mutual funds and do not offer ETFs as an alternative.
Like mutual funds, ETFs are diversified portfolios of stocks (Canadian, American or international) or bonds. But ETF fees are typically much lower than mutual fund fees. Small annual fee differences can have an enormous impact on the returns investors actually get to keep over time. Let’s compare two funds producing the same 6% average annual compound return before fees: a mutual fund with 2% annual fees and an ETF with 0.2% annual fees.  A $10,000 25-year investment in both funds would generate a total gain of $32,919. But after fees, the mutual fund investor would retain only $16,658 or 51% of that gain compared with a net gain for the ETF investor of $30,939, or 94% of the total…

Save, invest, prosper with My Own Advisor.
January 2018 Dividend Income Update Welcome to my first dividend income update for 2018! For those of you new to these posts on my site, for the last few years, every month I discuss our approach to investing using Canadian dividend paying stocks.  **Warning** that approach, while effective, is rather boring.  I hope you read on…
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