Personal Wealth-Building mentor?
November 2, 2007 8:28 PM   Subscribe

Is there such a thing as a personal Wealth-Building Mentor - your own CFO?

We've had a number of advisors over the years (in Toronto) but they're always tied to selling funds or stocks of some sort - yes I realize that's how they make most of their money.

But none ever seem truly dedicated to service us 100% and as a result our plan and scope always seem less than 100%.

We do our research, read a lot, but still would like that accountable professional who is there to mentor our wealth growth.

Do these people exist for non-"high-yield" (but getting there) types?
posted by iTristan to Work & Money (4 answers total) 2 users marked this as a favorite
Advisors are probably your best route. However, rather than a commission based service, have you considered a fee based service? Usually, they might charge you 1% a year or something similar. That way, they have an incentive to make you as much money as possible.

If you give them leeway to invest the money as they will, they can lump your money in with a large client's when they make trades.
posted by Pants! at 9:18 PM on November 2, 2007

This question comes up from time-to-time at my personal finance site. From what I've heard, fee-based advisors are the way to go. Here's a typical Q&A on the subject. Most experts say that learning the stuff yourself is one of the best things you can do. It sounds like you do that already.
posted by jdroth at 9:47 PM on November 2, 2007

Response by poster: Yes, I completely expect some sort of fee-based, or fee-for-performance-based compensation - and of course I don't mind paying if I'm making money anyway.

Mostly it's the always-available, 100% accountable to us (not the fund companies), always-mentoring type of relationship that we're after.

jdroth, I'll check out your Q&A as well.

posted by iTristan at 6:44 AM on November 3, 2007

Fee-based means that some part of their compensation comes from fees that you pay them directly, but they're still allowed to make money from what they sell you, too. The key term you probably want is "fee only." You pay fee only advisors explicitly, and they don't make any other money from your investment activities, so their only interest is in providing a service to you. In the US, NAPFA lists fee only advisors, and their website has good info about why a fee only advisor is what you probably want. Perhaps someone there could refer you to a similar organization for Canada?
posted by daisyace at 10:21 AM on November 3, 2007

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