Hmmm, he has $472,000 and is lives off of $36,000/year??
Yes he has offered us Estate, tax etc. but my wife who does our taxes for the most part did take advice from our advisor. I agree, we should utilize there services more since we're in essence paying for it.
I stopped trying to read book on investment since I found it somewhat confusing I tend to learn more from BNN, maybe due to the wording. I don't for the most part go and purchase stock based on there advice although RIMM sounds like a good buy today depending on what it opens at this morning.
As for FWF, I find that they're a great source of advice, knowledge and help, in my opinion as well as several other newbie's we just can't seem to get by the sarcasm and bashing that tends to migrate towards newbie's. I've been a member for couple years and truly heisted in posting more for the above reasons. I'm pm'd several lurkers or other newbie's that either don't or stopped posting and we share the same thoughts. I don't want to bash FWF, I'm only giving some newbie's point of new and believe me when I say it's not just me that has noticed this.
Another reason for asking what a reasonable return is and bear with me while I tell you a short story. My neighbour retired at age 50 (sales rep) on a salary of less then $100,000.00 (sole income), raising a wife and 4 kids. His investment style is as follows.... he would take two mutual funds such as Canadian Equity and Latin America and invest approximately $200k. When the mutual fund would reach a peak of let's say 10% he would do a switch and purchase Money Market funds. When CE and LA would go down for what ever amount he felt comfortable he would buy back in. I checked those funds and indeed they went up and down during the year with favorable gains (on average). He was able to make the 200k grown to over 600k in less then 10 years. I don't believe he withdrew money from this account but he has consistently done well. He claims he started investing when he was a teenager and even gathered a bunch of friends together and met once a month to discuss the world of investing.
I've been with Manulife, IG, TD among others and I have to say TD PIC has been the best so far in regards to advisor communication, knowledge and experience. With the recent downturn in the economy it's difficult to gauge TD PIC success since I'm still down.
No I can't achieve my personal financial goal, since I sometimes feel I'm doing catch based on my previous poor advisors investments of which I did loose some of my principal. Can I survive on what we have, well of course but I wonder if there is an opportunity to do better.
I don't mind accepting more risk since I've seen my portfolio go up and down by more then 400k in one year and I didn't freak out. I'm starting to understand this more, thanks for making it bit more clear.
He has told me about stock/mutual funds that he's lost throughout his life, that's why he now only deals with mutual funds, he's never sugar coated it. I can appreciated the statement "if you believe"..... he's been my neighbour for 25 years, I see his lifestyle as well as talk to him almost everyday, therefore I want to give him some benifit of the doubt. Either way, I know for a fact he's hasn't been employed for about 10 years and have an idea of his spending habits. He has also told me on several occasions before he has bought and sold, not after, I've montored the results and it's come true each time. Therfore..... he talks the talk and walks the walk. I've even taken some of his advice and made over 10% on Canadian Equity and Latin America, mind you I didn't invest anywhere near what he has. He will not however invest for anyone (except his kids) or actually tell me what to buy and sell. He only gives advice and allows you to make your own decisions.One thing I learned a long time ago is that folks (i.e. neighbors) like to talk about their conquests. They seldom talk about their failures and shortcomings.
If you believe your neighbor, then what you should do is obvious: Let him run your portfolio for you. I would suggest you look at his financial statements first if he will let you.
So if I understand correctly it's not hard at all to get over 10% returns per year after fees as my neighbour has done? I haven't been able to get anywhere close to that through IG, Manulife etc.
In 2008 he saw the market going down and decided to put most of it in money market. He was down in 2008 by probably 30% but this year he's already broken even and is on the upswing. Since he's averaged over 10% per year during the last 10 years, last year brought down his average closer to the 10%. I asked on FWF last year whether it was difficult to obtain an average of 10% per year over a 10 year period since my neighbour has done so and the poll suggested it was next to impossible. Maybe he's got horse shoes up his..........***. He does however spend about two hours per day checking and reading the markets.
