|
|
The Latest:
One client suggested what's key about this page is 
A prospective customer was recently touting the advantages of dealing
with a new fund-flogger at a Campbell River bank: "Gee, John, she
said she can do all this stuff for us for free, because she's paid a
salary by the bank, and doesn't have to charge us for it."
"Where do you think her salary comes from?" asked John.
"Gee John, she didn't say. But she did emphasize she doesn't
make any commission income, so she'd have our best interests at heart."
"Why then," posed John, "if you were to buy into Humungous Bank Balanced
Fund through her, or through ,
you'd have exactly the same fund with exactly the same charges,
exactly the same return, exactly the same trailers paid?"
"Gee John, I don't have a clue. But she really stressed
the fact that she doesn't get any commissions. So we've got to
be better off buying Humungous Bank Balanced Fund straight from
her. . . . and then letting her do all our other work. She
did promise us some really neat graphs in at least four colours."
At this point, John had to agree. "Yes," he sighed, "you're
right; you'll be much better off with Humungous Bank. While you're at it,
ask if she does brain transplants."
|
|
|
Coaching family prosperity --
Professionally, diligently, tirelessly. . . .
|
|
COMPENSATION
Financial planning is "fee based."
An initial consultation is required to determine if a fully comprehensive plan is in order,
or if you might be better served with help along a particular line, or with referral to another practioner, an accountant, or a lawyer. There is no charge for such consultation.
1. Fees to develop a plan are charged out on a hourly basis, though a ceiling is generally established at our initial ("discovery") meeting. This capped fee provides for one year's work. On-going monitoring is by retainer, $1250 annually. Preparing annual income tax returns for the family is included.
The hourly rate is $120.
It is the nature of the financial services industry that advisor compensation derives from some factor of AUM, “assets under management.” AUM may include stocks, bonds, mutual funds, GICs.
2. Annual retainers may be subsidised by AUM, at a rate of 0.50% for all AUM at held at a plan anniversary. Clients are then invoiced for any differences. For example, $200,000 AUM generates $1,000 in subsidy, resulting in a charge for annual plan monitoring of $250 ($1250 less $1000).
3. For those young families with children at home, with no AUM, but with a commitment to save at least 10% of disposable income, the fee to develop a plan is halved. For the first two years the annual retainer is also half the usual rate, and is further subsidized by AUM.
4. Anything is negotiable.
5. Whatever fee structure, all clients should expect the same service. This includes at least four meetings to put the plan into shape, to roll it out, likely two meetings annually to monitor its behaviour, and one, if needed, to review income tax. Investments are reviewed on a regular ongoing basis.
6. Implementation of your plan may generate commission income from insurance products or annuities, but you are under
no obligation to transact such business here. Ongoing commission income is applied against the annual monitoring fee.
Specific engagement fees are negotiable.
Past assignments have included pension analysis and retirement lifestyle
workshopping. An hourly rate can be applied.
POTENTIAL CONFLICTS OF INTEREST
This is an ownership issue. If an investment firm, a bank or credit
union owns the so-called independent financial planner, how truly independent
is she?
- John owns 100% of Discovery Islands Financial Services Ltd.
- Discovery Islands Financial Services Ltd. owns 1% of BC Land Insurance Agencies,
now a component of Vancouver Island Insurance Centres.
- Neither corporation nor John owe money to any financial institution
with whom we may place business.
CERTIFICATIONS AND LICENSES
- Certified Financial Planner licensee
- Registered Financial Planner licensee
- Canadian Accredited Insurance Broker
- Life Agent 2
CONTINUING EDUCATION
Maintaining certifications, licenses, professional memberships, requires more than
30 hours annually in various seminars around the country. National conferences
and schools are attended for the latest in financial products, economic trends,
tax, estate, and family law. And John's nose is usually planted within an
economic text book.
THE SMALL PRINT
|
Sale of Products Where Prohibited
This communication is directed only to persons
No Advice
The information contained on this website is provided on the understanding that we are not providing financial, legal, tax or accounting advice. As such, it should not be used or relied upon as a substitute for consultation with professional financial, legal, tax or accounting advisers.
No Guarantees or Warranties
While every effort is made to ensure that the information contained on this website is correct, John Q Gregg and his affiliates ("we" and "us") are not responsible for any errors or omissions, or for the results obtained from the use of this information. All information is provided "as-is" and without guarantee of any kind, including any guarantee of completeness, accuracy, timeliness of information or of the results obtained from the use of this information, and without warranty of any kind, express or implied, including warranties of performance, merchantability and fitness for a particular purpose.
We may make improvements and/or changes in the products and/or services described in this website at any time without notice.
No Endorsements
Certain links on this website connect to other websites maintained by third parties over whom we have no control.
We do not endorse the products or services of those third parties and make no representations or warranties as to the accuracy, completeness or any other aspect of the information contained on those websites.
Limitation on Liability
In no event will we or our directors, officers, employees or agents be liable to you or anyone else for any action taken or decision made in reliance on any of the information contained on this website or for any direct, indirect, consequential, special or other similar damages, even if we have been advised of the possibility of such damages.
Internet E-mail
Internet email communication has not been proven to provide completely secure transmission of information. We accept no responsibility for ensuring the integrity and privacy of information sent either to or from us in this manner.
|
|
|
|
