Thursday, February 9, 2012
Thursday, March 4, 2010
links to articles
http://www.financialpost.com/story.html?id=2602685
http://www.financialpost.com/story.html?id=2605593
http://www.financialpost.com/story.html?id=2620400
http://www.financialpost.com/story.html?id=2605593
http://www.financialpost.com/story.html?id=2620400
About Marc Stern
As a successful professional, entrepreneur, or businessperson, you recognize and appreciate the value of building a strong support team. When it comes to your financial affairs, you need to have confidence that your advisors will always put your interests first.
For over 25 years, Marc Stern has been providing advice and guidance in investment management, financial management, taxation, and estate planning to successful individuals, families, and corporate entities. Marc provides a down-to-earth, practical approach to the services he provides to a client base that includes active and retired executives of both public and private corporations, expatriate Americans, professionals, and members of the academic community.
The portfolio management services he provides are founded on time-tested institutional style investing principles. He does not push products. There are no hidden fees or commissions. No hype. Just common sense. With Marc and the rest of the Montreal team there are no surprises.
Marc’s goal is to help you establish personal and corporate ownership structures that are fully supportive of and completely in tune with family and business dynamics.
Learn more about how Marc Stern’s expertise can help you.
For over 25 years, Marc Stern has been providing advice and guidance in investment management, financial management, taxation, and estate planning to successful individuals, families, and corporate entities. Marc provides a down-to-earth, practical approach to the services he provides to a client base that includes active and retired executives of both public and private corporations, expatriate Americans, professionals, and members of the academic community.
The portfolio management services he provides are founded on time-tested institutional style investing principles. He does not push products. There are no hidden fees or commissions. No hype. Just common sense. With Marc and the rest of the Montreal team there are no surprises.
Marc’s goal is to help you establish personal and corporate ownership structures that are fully supportive of and completely in tune with family and business dynamics.
Learn more about how Marc Stern’s expertise can help you.
How Many Financial Advisors Does One Person Need?
Acronyms don't tell whole story!
By ANDREW ALLENTUCK, Financial PostFebruary 26, 2010
Read more: http://www.montrealgazette.com/business/Letters+tell+whole+story/2614761/story.html#ixzz0hF18M6tN
The letters after a financial advisor's name can tell a lot about what he or she does, says Marc Stern, who has designations of MBA, CA, CIM, DMS, FCSI, and Pl.F. on his business card.
The vice-president and portfolio manager at PWL Capital Inc. in Montreal confides: "The letters don't tell the whole story. You also want to know who awarded them and if the bearer is licensed in his specialty, who the licensing authority is and whether the person is in good standing with that authority." Shopping for financial advice without having a focus on what you need is like going into a supermarket without a shopping list or any idea of what to cook. An initial road map can be put together by a financial planner who will have an overview of financial resources, present and future income needs and suggestions for how structures such as family trusts may be used.
The majority of planners, designated by the initials CFP for Certified Financial Planner, or RFP, for Registered Financial Planner, work on commissions from the mutual funds they sell.
A minority of planners work by the hour as "fee-only" advisors. Their fees range from $150 to $300 per hour, says Adrian Mastracci, MBA, RFP, a fee-only planner and portfolio manager who heads KCM Wealth Management Inc. in Vancouver. Some fee-only planners, as well as commission-based planners, are registered to sell securities.
At the ground level, where the cost of entry may be as little as what a few units of a bank's mutual funds cost, or a minimum $100 to open an account, management expertise is packaged with the funds sold. Management fees average 2.4% of assets for Canadian equity portfolios.
Mutual fund companies, including banks, offer asset-allocation services and stage-of-life portfolios in solutions that are mostly off the rack.
For investors who have $500,000 or more to invest -- though the threshold varies from one advisor to another -- there are custom-tailored solutions. The costs are usually billed outside of the assets managed. Fees range from 1.0% or 1.5% of portfolio value and decline with the amount of money handled to as little as half of 1% or even less for portfolios with $10-million or more of assets.
Some firms charge a minimum fee. KCM Wealth Management, for example, charges $6,000 a year, which would be a substantial 6% of a $100,000 portfolio. Typically, KCM handles portfolios with $300,000 or more. That fee wraps in not just portfolio management, but retirement planning and other work done by financial planners.
At most specialty portfolio management firms, investing will often be the work of CFAs (Chartered Financial Analysts) or CAs (Chartered Accountants).
They will work to the goals given them -- aggressive capital growth, income, market- neutral growth, asset preservation, and so on.
The larger and the more diverse the portfolio the wider the range of specialists who may be called in to provide direction. Bond managers, who are usually CFAs, can be specialists in corporate bonds, government bonds or global bonds. Stock managers may also be specialists in various industries. As well, accountants may be needed to manage tax liabilities.
Custom professional management can cost less than average mutual fund fees. At Portfolio Management Corp. in Toronto, managing director and portfolio manager Norman Levine, MBA, CFA, says that the majority of managers with discretionary authority have minimums of $500,000 or $1-million for clients.
Some advisors, including his own company, allow clients in one family to pool their resources in order to cross the threshold.
Management fees per $1,000 managed tend to decline with the amount of money under management, Mr. Stern explains. Moreover, he notes, many management firms do not carve their fees in stone and will negotiate if assets are under their entry limits.
For the client, hiring managers, each of whom will have some minimum amount of money they are willing to shepherd, requires judging competence and fee efficiency.
Fees decline with amount of money managed, so chopping up a portfolio and sending bits to many specialists may cause average fees and total fees to rise. That raises the bar for judging if the advice is worth the cost.
In choosing managers and advisors, it's really wisdom that counts. Letters after a name are only a beginning. References, in-person meetings and evidence of ability to cope with risk and return are what really matter, says Mr.
Stern. "Honesty, ability and results are what makes a relationship work," he says.
In the end, divvying up management among a financial planner, a stock portfolio manager and a bond manager can defeat the goal of having specialists do their best work. "If you have too many advisors, then you wind up as an allocator and even, ironically, as a sector picker," says Derek Moran, RFP, who heads Smarter Financial Planning Ltd. in Kelowna, B.C.
CFC: Chartered Financial Consultant, an advisor specializing in building capital and retirement planning.
CFP: Certified Financial Planner, a designation awarded by the Financial Standards Planning Council, and dealing with the basics of investments, insurance, taxation, estate planning and retirement planning.
CGA: Certified General Accountant, a designation awarded by the Certified General Accountants Association. Holders of this designation work for companies, provide tax advice, handle financial management and may do work in the areas of securities analysis.
CIM: Canadian Investment Management, a specialist in portfolio management who has completed courses offered by the Canadian Securities Institute.
CLU: Chartered Life Underwriter, an advisor specializing in income replacement, risk management, estate planning and wealth transfer.
CMA: Certified Management Accountant, a title that reflects the holder's specialization in issues in financial management within corporations, government units and non-profit institutions.
CSA: Certified Senior Advisor, a specialist in helping persons concerned with issues of those over age 50.
DMS: Derivatives Market Specialist, a certification from the Canadian Securities Institute.
EPC: Elder Planning Consultant, specialists in financial needs of clients over age 55. Created in 2003 by the Canadian Initiative for Elder Planning Studies.
FCIA: Fellow of the Canadian Institute of Actuaries, required by anyone practising as an actuary in Canada. Actuaries deal with risk analysis, usually in the context of life insurance and pensions, but also in health insurance, finance and investments.
FCAS: Fellow of the Canadian Society of Actuaries, a designation for actuaries specializing in issues of property and casualty insurance.
FCSI: Fellow of the Canadian Securities Institute, typically but not exclusively held branch managers of investment dealers or their partners, directors and officers.
MBA: Master of Business Administration designation.
PL.F.: Planificateur financier, awarded by the Institut Québécois de planification financière for competence in fields similar to those of CFPs and RFPs.
RFP: Registered Financial Planner, a designation awarded by the Institute of Advanced Financial Planners. Similar to the CFP designation, the RFP program emphasizes financial planning.
© Copyright (c) The Montreal Gazette
Read more: http://www.montrealgazette.com/business/Letters+tell+whole+story/2614761/story.html#ixzz0hF1UeYwV
By ANDREW ALLENTUCK, Financial PostFebruary 26, 2010
Read more: http://www.montrealgazette.com/business/Letters+tell+whole+story/2614761/story.html#ixzz0hF18M6tN
The letters after a financial advisor's name can tell a lot about what he or she does, says Marc Stern, who has designations of MBA, CA, CIM, DMS, FCSI, and Pl.F. on his business card.
The vice-president and portfolio manager at PWL Capital Inc. in Montreal confides: "The letters don't tell the whole story. You also want to know who awarded them and if the bearer is licensed in his specialty, who the licensing authority is and whether the person is in good standing with that authority." Shopping for financial advice without having a focus on what you need is like going into a supermarket without a shopping list or any idea of what to cook. An initial road map can be put together by a financial planner who will have an overview of financial resources, present and future income needs and suggestions for how structures such as family trusts may be used.
The majority of planners, designated by the initials CFP for Certified Financial Planner, or RFP, for Registered Financial Planner, work on commissions from the mutual funds they sell.
A minority of planners work by the hour as "fee-only" advisors. Their fees range from $150 to $300 per hour, says Adrian Mastracci, MBA, RFP, a fee-only planner and portfolio manager who heads KCM Wealth Management Inc. in Vancouver. Some fee-only planners, as well as commission-based planners, are registered to sell securities.
At the ground level, where the cost of entry may be as little as what a few units of a bank's mutual funds cost, or a minimum $100 to open an account, management expertise is packaged with the funds sold. Management fees average 2.4% of assets for Canadian equity portfolios.
Mutual fund companies, including banks, offer asset-allocation services and stage-of-life portfolios in solutions that are mostly off the rack.
For investors who have $500,000 or more to invest -- though the threshold varies from one advisor to another -- there are custom-tailored solutions. The costs are usually billed outside of the assets managed. Fees range from 1.0% or 1.5% of portfolio value and decline with the amount of money handled to as little as half of 1% or even less for portfolios with $10-million or more of assets.
Some firms charge a minimum fee. KCM Wealth Management, for example, charges $6,000 a year, which would be a substantial 6% of a $100,000 portfolio. Typically, KCM handles portfolios with $300,000 or more. That fee wraps in not just portfolio management, but retirement planning and other work done by financial planners.
At most specialty portfolio management firms, investing will often be the work of CFAs (Chartered Financial Analysts) or CAs (Chartered Accountants).
They will work to the goals given them -- aggressive capital growth, income, market- neutral growth, asset preservation, and so on.
The larger and the more diverse the portfolio the wider the range of specialists who may be called in to provide direction. Bond managers, who are usually CFAs, can be specialists in corporate bonds, government bonds or global bonds. Stock managers may also be specialists in various industries. As well, accountants may be needed to manage tax liabilities.
Custom professional management can cost less than average mutual fund fees. At Portfolio Management Corp. in Toronto, managing director and portfolio manager Norman Levine, MBA, CFA, says that the majority of managers with discretionary authority have minimums of $500,000 or $1-million for clients.
Some advisors, including his own company, allow clients in one family to pool their resources in order to cross the threshold.
Management fees per $1,000 managed tend to decline with the amount of money under management, Mr. Stern explains. Moreover, he notes, many management firms do not carve their fees in stone and will negotiate if assets are under their entry limits.
For the client, hiring managers, each of whom will have some minimum amount of money they are willing to shepherd, requires judging competence and fee efficiency.
Fees decline with amount of money managed, so chopping up a portfolio and sending bits to many specialists may cause average fees and total fees to rise. That raises the bar for judging if the advice is worth the cost.
In choosing managers and advisors, it's really wisdom that counts. Letters after a name are only a beginning. References, in-person meetings and evidence of ability to cope with risk and return are what really matter, says Mr.
Stern. "Honesty, ability and results are what makes a relationship work," he says.
In the end, divvying up management among a financial planner, a stock portfolio manager and a bond manager can defeat the goal of having specialists do their best work. "If you have too many advisors, then you wind up as an allocator and even, ironically, as a sector picker," says Derek Moran, RFP, who heads Smarter Financial Planning Ltd. in Kelowna, B.C.
CFC: Chartered Financial Consultant, an advisor specializing in building capital and retirement planning.
CFP: Certified Financial Planner, a designation awarded by the Financial Standards Planning Council, and dealing with the basics of investments, insurance, taxation, estate planning and retirement planning.
CGA: Certified General Accountant, a designation awarded by the Certified General Accountants Association. Holders of this designation work for companies, provide tax advice, handle financial management and may do work in the areas of securities analysis.
CIM: Canadian Investment Management, a specialist in portfolio management who has completed courses offered by the Canadian Securities Institute.
CLU: Chartered Life Underwriter, an advisor specializing in income replacement, risk management, estate planning and wealth transfer.
CMA: Certified Management Accountant, a title that reflects the holder's specialization in issues in financial management within corporations, government units and non-profit institutions.
CSA: Certified Senior Advisor, a specialist in helping persons concerned with issues of those over age 50.
DMS: Derivatives Market Specialist, a certification from the Canadian Securities Institute.
EPC: Elder Planning Consultant, specialists in financial needs of clients over age 55. Created in 2003 by the Canadian Initiative for Elder Planning Studies.
FCIA: Fellow of the Canadian Institute of Actuaries, required by anyone practising as an actuary in Canada. Actuaries deal with risk analysis, usually in the context of life insurance and pensions, but also in health insurance, finance and investments.
FCAS: Fellow of the Canadian Society of Actuaries, a designation for actuaries specializing in issues of property and casualty insurance.
FCSI: Fellow of the Canadian Securities Institute, typically but not exclusively held branch managers of investment dealers or their partners, directors and officers.
MBA: Master of Business Administration designation.
PL.F.: Planificateur financier, awarded by the Institut Québécois de planification financière for competence in fields similar to those of CFPs and RFPs.
RFP: Registered Financial Planner, a designation awarded by the Institute of Advanced Financial Planners. Similar to the CFP designation, the RFP program emphasizes financial planning.
© Copyright (c) The Montreal Gazette
Read more: http://www.montrealgazette.com/business/Letters+tell+whole+story/2614761/story.html#ixzz0hF1UeYwV
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