(February 13, 2004) Freeing yourself from limitations, choosing your own path and heading out onto the open road has a certain mystique to it.
Following in the footsteps of an era where “bigger is better” was the business mantra, many top advisors are choosing to move away from a bank-based practice and chart a course with their own boutique firm.
“Consolidation is still a hot topic in financial planning circles, but stockbrokers seem to be going the opposite route,” says Scot Blythe, investing editor at Investing Advisor’s Edge. “Most independent dealers were bought out by banks in the 1990s. Now independents are coming back.”
In his cover story for the February issue, “ Advisor’s EdgeBlythe is examining this trend as big-book investment advisors take a more personal approach to their clients.
“They find that banks have a cookie-cutter approach to customer service and products,” Blythe says. “Furthermore, banks are simply too sluggish. Some top brokers want to regain the personal touch in a smaller, highly concentrated firm. It’s about control, but also about culture.
Also in the February issue titled Advisor’s Edge concludes his RRSP Survival Guide with a fourth section titled “Open Dialogue.”
“It focuses on the fact that RRSPs are just one part of the investing puzzle,” says Deanne Gage, editor-in-chief Advisor’s Edge. “RRSP season is a chance to revisit the entire portfolio – other assets a client may have in unregistered accounts. This is an opportunity to introduce new assets, perhaps investments they haven’t previously considered, such as segregated funds.
Titled “Guaranteed Contracts,” the article examines seg funds and whether they might be the right product for clients who have decided that the rollercoaster of equity markets is not for them.
“They just want something safe, something that gives them a guarantee – they don’t mind paying higher management costs for that product, but they can rest easy,” Gage says.
There is also an article on whether certain investments should be held in an RSP or in a non-registered account, based on various scenarios.
“Hot Property” is an article by Geoff Kirbyson that examines the movement of investors in the real estate market. Is this just another bubble waiting to burst? – asks the author.
“There is no doubt that we are seeing a boom in the real estate market right now, and perhaps people who may have been withdrawn from the stock market or investing in traditional mutual funds could be encouraged to invest in real estate and real estate investment trusts (REITs),” says Gage. “This article does a good job of explaining the nuances of REITS, what type of clients should consider them, and the pitfalls associated with them.”
Submitted by Steven Lamb, Advisor.ca, steven.lamb@advisor.rogers.com
(13/02/04)
