Get what you pay for

A wise investor once said, “Price is only an issue in the absence of value.” This week’s article is from State Street, examining what investors want to pay for, and what they feel they get (hint: it doesn’t always match up): http://statestreetspdrs.com/precise/files/Asset/Communicating-Value-and-Fees-Report.pdf

So what is the price of good advice? In a world where technology is commoditizing the investment process, brokers are racing to make trading almost free, and simple ETFs can be had for as little as 0.07% management fee, the goal posts are shifting. Investors must shift too, both their expectations on what “low cost” investing is becoming, and how that will affect returns for all.

The one thing that will never change, however, is a premium on good advice.


Ben Kizemchuk is a Portfolio Manager & Investment Advisor with Altus Securities Inc. in Toronto. He offers financial planning and investment management for high net worth Canadian investors. Ben focuses on high quality investments, the Growth and Income Portfolios, low risk investing, and reducing tax.