(Canada) Help me out of this conundrum with GF finances.

Throwaway account for privacy.

Partner is a Canadian citizen. Has a FA & FP in Canada, and I have recently learned they have her ~$450k portfolio invested in products with a MER in the vicinity of 2.2%

Partner has a medium to low risk profile.

Adviser is looking to move some of the bonds into managed funds (with similar 2.0-2.5% MER) to take advantage of the market dip.

Goals:

• Set her up with a 'fee for advice' fiduciary located in CAN (I don't want to be her money manager) for ongoing annual portfolio asset allocation reviews (i.e. make sure it represents her risk profile appropriately)
• Long term migrate her to low cost passive index funds with an asset allocation that matches her risk profile (doing so in the most tax efficient way possible)
• Immediate term looking for the right product to buy with the proceeds from the sale of bonds

There is a tension between what the FA/FP are recommending and what I know to produce the best risk adjusted long term returns (low cost passive index funds). Partner acknowledges that my suggestions will produce better returns long term, but for the immediate term she is not sure what steps to take/what to do since the FA/FP relationship is already there. Supposedly, FA/FP don't receive commissions on the products they recommend.

Questions:

• What would you do PC? She is understandably nervous about trying to switch everything rapidly in the current volatile market (and conscious of creating a tax event).
• How does one find a reputable fiduciary financial adviser in Canada? (we're currently located in Australia, I am AU citizen)
• Finally are there any Canada equivalent forums where I would be better off asking these questions?

Appreciate any thoughts.

 

Never do anything unless you are certain it is in your best interests.
No-one cares as much about your finances as you do.
I would be very wary of entering markets at this stage - there may be a dip now but no guarantee the market won’t fall further.

 

How long you been together? I would be wary advising her what to do with HER money. Things go bad guess who she gets to blame, and likely will never let you forget it.
Do you know the most tax efficient way to do this?

Yes heaps, do a google search.

 

Read: I am not a professional and I don't want that responsibility or relationship complication.

Bold added to clarify that I am looking for more than 'google search'

 

Echoing my comments to her.

It just pains me in the short term that she's being whacked with such high expenses.

 

Only a suggestion but I believe Canada has a number of Exchange Traded Funds listed. Most have a very low expense ratio way less than 1% - probably in the 0.50% range.

Maybe a search of the relevant stock exchange(s) can give your partner some guidance. 2.2% seems pretty high for what could be mediocre to crap performance.

 

Your complete guide to index investing | Canadian Couch Potato

Dan Bortolotti at PWL Capital would have been my go to for this, but min. portfolio size CAD 1,000,000

If the Advisor is not receiving commission - ask them how they are remunerated. If it is an AUM type fee, then just tell them to give the expensive beta funds the @rse and replace with cheap beta. He/She wont care as their remuneration wont change. The link I shared has all you'll want to know about index investing and asset allocation from a Canadian perspective. Let us know how you get on.

 

My response was to your question if there are any Canadian Investment Forums, which there are many, not saying to just google a Financial Planner.
Asking a Canadian Forum for recommendations is surely better than asking an Australian forum for someone in Australia to recommend a reputable Canadian FP/FA??
Good luck with everything.