Opinion on Investors Group?

[Fever]

Has anybody ever used Investors Group and what were your thoughts?
Thanks

[Rescuer]

I actually work for Investors Group. It's a good company thats been around for 80 years or so. The biggest thing with IG is that they do full planning. We don't just grab your money, throw it in a fund and then disappear. If thats what you want, deal with a bank or credit union.... or a stock broker.
As a Consultant with IG, i do tax planning and estate planning. I also do risk management with insurance from 4 different companies, so i can compare prices and benefits and give the best option. I also do retirement planning and investment planning. I can sell proprietary funds as well as third party funds and we have a securities division as well for stock portfolios. On top of that we can do debt consolidations and offer bank loans, locs and home equity locs too. And we offer mortgages. Right now we have 2.89 FIXED rate 4 year mortgages.
So yeah. If you want planning IG is a great option for you.

[Gsxrboy]

WOW sounds awesome Rescuer, except how do you get paid? Front end load, back end load, DSC's
Good advice does not come free, so it is obvious that it is in your best interest to sell all you can to your clients. Not that this is evil, it is just that so many people get taken advantage of when dealing with investments. Some advisers take advantage of the ignorance of their clients, lock them into investments without giving their clients full understanding on what they are investing in and the costs of those investments (MER's, commissions, penalties for withdrawals etc)
If you provide awesome service, explain clearly what your clients are investing in and explain clearly how you get paid, then good on you, keep it up.

[dagney]

I would be careful of any business that only sells there own version of mutual funds. Now that it is february, there are magazine articles out with those funds that perform the best historically. I would also be aware of MER's (management expense ratios) if the fund you own is making 5% a year and 2.5% is being eaten up by fees ... YIKES! Vanguard has crossed the U.S. border and is known for low fees which will hopefully wake up these Canadian companies who have been soaking consumers for decades.

[marstec]

WOW sounds awesome Rescuer, except how do you get paid? Front end load, back end load, DSC's
Good advice does not come free, so it is obvious that it is in your best interest to sell all you can to your clients. Not that this is evil, it is just that so many people get taken advantage of when dealing with investments. Some advisers take advantage of the ignorance of their clients, lock them into investments without giving their clients full understanding on what they are investing in and the costs of those investments (MER's, commissions, penalties for withdrawals etc)
If you provide awesome service, explain clearly what your clients are investing in and explain clearly how you get paid, then good on you, keep it up.

So true. Be prepared to be attacked for your viewpoint from the people in this very lucrative field.

[Tresmom]

I deal with them, my first advisor was wonderful and full of great info. He passed away and our new guy I have to ask lots of questions and follow up on things as he forgets to follow through. I would suggest reading Never too Late by Gail Vaz Oxlade, she has some great points in what questions or ask and how to choose a financial planner.

[Carlotta]

WOW sounds awesome Rescuer, except how do you get paid? Front end load, back end load, DSC's
Good advice does not come free, so it is obvious that it is in your best interest to sell all you can to your clients. Not that this is evil, it is just that so many people get taken advantage of when dealing with investments. Some advisers take advantage of the ignorance of their clients, lock them into investments without giving their clients full understanding on what they are investing in and the costs of those investments (MER's, commissions, penalties for withdrawals etc)
If you provide awesome service, explain clearly what your clients are investing in and explain clearly how you get paid, then good on you, keep it up.

Wow how did I know that you would have something to say about this subject hahahaha.
I deal with Investors Group. My consultant explains very clearly about DSC fees and no load fees (They do not have front end loads btw). If you worked in the industry you would know that there is a large thing called COMPLIANCE. And it is one reason why it is preferable to deal with a large company who's reputation is constantly on the line, than a little guy who just sets up an office and starts selling funds. The compliance department at IG is extremely diligent and extremely efficient. I know this because they make random calls to clients and ask them questions about purchases they have just made, to ensure that clients know about NL and DSC funds. (I have some of both actually... the DSC ones are for my retirement and the NL ones are for short term)

As far as fees go to transfer out, EVERY financial institution, including banks and credit unions, charge to transfer funds or in kind to another institution.

By the way, even though I deal with IG, I also own other funds, bought and paid for with my IG consultant. I have one Trimark fund that I quite like. I also own some bank stocks... also purchased through IG. My consultant does not get paid a ommission on any of those things.

I'd also like to point out that financial advisors are paid trailer fees on funds they sell. If the price of the fund goes up (or does well in other words) he wil get paid more. If the price of the fund drops (as EVERY fund did in 2008) he gets paid less, since he is paid on a percentage basis. So why on earth would he recommend a fund that he does not think will perform well for his client?

As far as fee for service advisors go, the client ends up paying twice. Once for the financial "advice" and once to the fund company when they purchase the funds. So how exactly does this save a client any money?

[Ecochick]

I actually work for Investors Group. It's a good company thats been around for 80 years or so. The biggest thing with IG is that they do full planning. We don't just grab your money, throw it in a fund and then disappear. If thats what you want, deal with a bank or credit union.... or a stock broker.
As a Consultant with IG, i do tax planning and estate planning. I also do risk management with insurance from 4 different companies, so i can compare prices and benefits and give the best option. I also do retirement planning and investment planning. I can sell proprietary funds as well as third party funds and we have a securities division as well for stock portfolios. On top of that we can do debt consolidations and offer bank loans, locs and home equity locs too. And we offer mortgages. Right now we have 2.89 FIXED rate 4 year mortgages.
So yeah. If you want planning IG is a great option for you.

Rescuer, can you help me figure out why my advisers from IG keep leaving??? I originally had a IG adviser who was fine, then I received a letter saying she had left the company (approx 1 year from are original meeting) next I have a different person for 6 months, then same letter, he is no longer with the company. So I get transferred to the latest one, she was wonderful, 1 year goes by and guess what! Another letter, this time I am frustrated, this woman was great, I felt really comfortable with her. Plus I have had to resign paper work 3 times now to transfer everything over to the new adviser.

Am I just unlucky? Or is there some kind of quota that my rep's have not been meeting, the undertone of the letter suggests they were let go. This makes me uncomfortable, what company looses 3 good people in a row?

[Gsxrboy]

Trailer Fees - As described by Investopedia


Definition of 'Trailer Fee'
A fee that a mutual fund manager pays to a salesperson who sells the fund to investors. The trailer fee pays the salesperson for providing the investor with ongoing investment advice and services.

Also known as a "trailer commission".

Investopedia explains 'Trailer Fee'
It is important to know whether your mutual fund salesperson is receiving a trailer fee because it may cause him or her to try to sell you a particular fund not because it is a good investment but because selling it to you will make him or her money. This fee is paid annually for as long as the investor holds shares in the fund.


Read more: http://www.investopedia.com/terms/t/...#ixzz1lHGRfAZd

WOW! It seems that fee only advisers win again Carlotta hahahaha

[ashedfc]

Am I just unlucky? Or is there some kind of quota that my rep's have not been meeting, the undertone of the letter suggests they were let go. This makes me uncomfortable, what company looses 3 good people in a row?

Advisor's transition for several reasons... ... ranging from
Retirement - can be due to any reason (retiring from active work or from business).
Just Give up (due to work stress/ can't handle it anymore)
Unable to meet the required quota (targets) assigned by the dealers/ banks/ whatever..
Move to anther dealer - etc.. etc..
&
Mostly its due to certain claus in their contract, they cannot take their existing clients with them (or sometimes, they don't want to take with them).

You have to live with this reality........... & figure out, whom you are more comfortable with... The Institution or The Planner/Advisor

This is a very common problem in the entire financial services industry.

[Rescuer]

Trailer Fees - As described by Investopedia


Definition of 'Trailer Fee'
A fee that a mutual fund manager pays to a salesperson who sells the fund to investors. The trailer fee pays the salesperson for providing the investor with ongoing investment advice and services.


WOW! It seems that fee only advisers win again Carlotta hahahaha

WOW! You can google!

As Carlotta mentioned, trailer fees are paid as a percentage of the fund's value. As mentioned, what advisor would recommend a fund that they think is going to be a loser?? It would only affect their own bottom line. As mentioned in your above post, trailer fees are on every fund. So it doesn't really matter who you deal with, or what company, trailer fees will still be a component of a mututal fund. So what is your argument? How would a fee only advisor help with that? They would still have trailer fees on their funds. There will still be MERS on their funds. Only now they would have to pay up front for advice as well! So it would only cost people more money. Plus they would have to continue to pay each and every time they met with their advisor, unless you are suggesting that they only meet once? In which case, there would be an even bigger problem with that.

Yes I get paid when someone invests with me. But for that commission, I meet with them several times a year. I do a full financial plan. I help with their taxes and their tax returns. I go over their wills and ensure they have them set up in a tax efficient manner and keep a copy of it in their file. I help them complete POA documents, go over beneficiary documents, help them set up RESPS for their kids, help them with debt consolidations, help finance their funerals and their retirements. All because they invested some money with me 10 years ago. I make sure they have the right type of insurance for their needs, rebalance their portfolios, help them when their kids wreck their car and they need money QUICK, help them save for a vacation and hold their hand when one of them passes away and they don't know where to turn next. Now tell me that I am overpaid and ripping off my clients? My clients are now my friends. I am invited to their kid's weddings, graduation parties etc. They trust me and I do not take that trust lightly. Yes I get paid. Do you get paid to do YOUR job?

You have not mentioned who it is that you work for? By your posts, I would suspect you are a self investor who reads and googles a lot and thereby thinks you are an expert. I hope you don't give advice on people's medical problems as well because I'm sure you're an expert in that field as well.


As for the question directed specifically at me, I sympathize with you. I know that it is difficult when you end up having a change of consultants. All I can tell you is that ashedfc is correct. It IS a tough business to be in and, like any business, people move around, switch companies, switch professions etc. If you dealt at a bank you would no doubt have had even more different advisors by now. My suggestion would be to call your IG office and request a more senior consultant who has been with the company for 5 plus years. If they have been, they probably have built a good book of business with a great client base. As for being told that someone was let go, the only instances where I know that people have been "terminated" is when they have done something illegal or unethical, or if they were not compliant with the rules set out by IG and the MFDA. My guess though would be that they had difficulty building up a client base and either changed careers or went to work in a bank where you are just assigned clients. Hope that helps?

[Ecochick]

Thank you ashedfc and Rescuer, I presumed that my adviser would not have been able to take me whereever she now works, but it is good to hear it from someone else. I cannot believe how upsetting it was for her to leave the company. I feel like we had a really good relationship and her help was extremely valuable. Ha-ha I guess that shows how important a good adviser really is.

[Gsxrboy]

Hello Rescuer,

I don't understand why you are taking the posting personally, but it is obvious that what I have written bothers you, if it didn't you wouldn't have bothered to post on here.
I have worked in the financial industry for a while, I got out of it because the companies that I worked for were very underhanded in the way they provided information to their clients. I am very lucky that I have a lot of friends that confide in me and show me their financial statements, I take this information very seriously and I am humbled that they trust in my opinion. Just like in any industry there are fantastic advisers and I am sure you know some that are not so great, when people ask for my opinion, that is what I provide, an opinion and I try to back up that information with web links.
Some of my friends have dealt with IG, Sunlife and Edward Jones, so far their experience with them has not been very good. Why would these advisers suggest seg funds to my friends? Why are they paying 2.5% to 3% fees to have these funds? Why is it that they were not shown other investment types that could also meet their needs? When I discovered DRIPS/SPP's and Index Funds, I was blown away at the crap that advisers provide. I realized that with some homework by regular people, they can invest their money in funds that only charge 0.25% MER's, no trailer fees, no commissions, no DSC's nothing other than the very low MER's.
Every post I have made I have backed up with some sort of link or book reference, both you and Carlotta have not, you insist that if a fund charges high fees, that it is a good way to invest. I mean it must be good because it costs so much to have, plus the person offering it gets a commission based off of that advise. If an adviser suggests a fund that pays him a trailer fee, and that fund does not do well, what do you think that person would do? Exactly switch that fund to a different investment that pays them a trailer fee.
I wonder how many times you have suggested index funds to your customers? Most likely never, why would you, you wouldn't be making any money if you did.
You will never hear a bank offering index funds to their clients either, why would they, the personal banker wouldn't hit their monthly targets. I have had many people at the company that I work with go to their various banks and ask for index funds, the look on the persons face of confusion is priceless, and also very troublesome.
When I give an opinion, I back up that information with as much information as I can, links, books, articles anything that my friends and colleagues can read for themselves and make a decision on.
If you and Carlotta provide awesome service, clearly explain how your clients investments work and explain how you get paid, good for you and continue doing so. My issue is not with the both of you, it is with the financial industry that likes to bend the rules slightly and not provide their clients real information.

[Rescuer]

The reason I take your post personally is because YOU are making it personal when you practically accuse everyone in the financial industry of being crooked and misleading to their clients.
I have never said that a high MER guarantees that it is a good fund, so don't put words in my mouth.
Do I sell ETFS? No. I am not licenced in securities. In case you were unaware, you cannot sell etfs without a securities licence. Have I made arrangements for clients TO buy ETFS. Yes. But remember, ETF's have fees as well.

"Since ETFs trade like stocks on an exchange they may be subject to brokerage commissions. These commissions can be significant, especially for smaller trades. For example, buying $3,000 of an ETF through a discount broker could cost $30 in commissions or 1% of the value. Furthermore, a similar commission may be charged when selling the ETF.
Management Expense Ratio (MER): The percentage of a fund’s average net assets paid out of the fund each year to cover the day-to-day and fixed costs of managing the fund. The figure is reported in the Fund’s annual management report of fund performance. MER includes all management fees and GST/HST paid by the fund for the period, including fees paid indirectly as a result of holding other ETFs.
Management Fee: The annual fee payable by the fund to the manager of the fund (e.g. RBC Global Asset Management) for acting as trustee and manager of the fund. This fee forms the largest portion of the MER. Included in the Management Fee are the costs associated with paying the custodian and valuation agents, registrar and transfer agents, and any other service providers retained by the manager.
Operating Expenses: Other operating costs such as fees associated with complying with national regulations and the fees payable to members of the board of governors of the ETFs. "
http://funds.rbcgam.com/etfs/learnin...ing-costs.html

Seg Funds : I have a few clients who have Seg Funds. Personally, I'm not a huge fan but they have their place, especially for clients who do not want GIC's for obvious reasons, but DO want an absolute guarantee that they will not lose their capital, and they are looking a long-term investments. They are VERY suitable for some clients, so don't just dismiss them as useless. Maybe they are not suitable for you.... but maybe they are to someone else. Which is why some of my clients have them even though I am not a fan of them. Unlike your opinion of advisors, I listen to my clients, assess each one individually and then make recommendations on their needs and circumstances. I don't just tell them to buy this fund because it will make me tons of money. And I don't close my mind to options, as you seem to be doing as you keep recommending etfs and drips as the best things since sliced bread! They are great for SOME people, but definitely NOT for others.

And that is the whole point here. You are telling people that mutual funds/financial advisors/insurance agents are all out to scam poor unsuspecting people. They are NOT. I'm sorry you had a bad experience but I have been to bad doctors/lawyers/car salesmen. It does not mean I would advise people never to seek medical advice, legal advice or buy a car. You are advising people to disregard any type of advisor who is not pushing etfs, drips etc. That is YOUR opinion and is certainly far from suitable advice for everyone. Each and every person has a unique set of circumstances.

I just started coming on this website a very short time ago. The only reason I even posted on here was because I did not like the fact that someone unlicenced to do so, was giving out their opinion as valued advice. I think I will just sign out now and leave you to it because I don't need to have my blood pressure raised.

I apologize to everyone on here. I just do not like having a whole industry maligned because of one person's opinion. I take my career and my clients very seriously and would never recommend anything to them that I did not believe was in their very best interest.

[ashedfc]

Has anybody ever used Investors Group and what were your thoughts?
Thanks

Every dealer has its strength & limitations.
It all depends upon what you are looking for.

One dealer may be good for one person & may not be good for another. So it's an individual's personal preference... Do not generalize the entire industry.
Even in a dealer (like Investors Group), it's also depends on who is your advisor, & what is his/her skills & understanding of the current & ongoing developments in the financial/economic world.
Keep in mind: the recommendation you receive doesn't comes from an institution, rather it comes from an individual. So selecting the individual is lot more important than selecting the institution.