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Our bank advisor is bleeding us on bank stock fees. How do I make it stop?
READ: How to mix rental income and portfolio returns in retirementThe catch: I know this is possible with some independent firms but I’m not sure it’s possible at the banks. You’ll have to ask your advisor or check the form you signed when you agreed to your “fees” and look for something that refers to “product exclusions”. The second and third approach is to do an “in kind” partial transfer from your account to a bank or independent discount brokerage. If you use your current bank’s discount brokerage you may get some help in completing the transfer paperwork and may get the withdrawal fee, if any, waived.
READ: Are TFSAs the best place to hold Vanguard’s new all-in-one ETFs?If you do an in-kind transfer to an independent discount brokerage you may save a little on fees and get a little less assistance. Before transferring your bank investments talk to your advisor and review the services they’re providing. It’s often easier for a financial planner to monitor and give advice when they have access to all of your investments, particularly in retirement.
READ: How to rebalance when some ETFs already do it themselvesAlso be aware that with a lower account value you may be transferred to a different bank advisor, although with your account size you’re likely okay. To summarize, the only fee you may have is the partial withdrawal fee. It doesn’t matter if your investments are in a RRSP/RRIF/TFSA or non-registered account. They can be transferred without any tax implications. I wish you luck Marion and hopefully you and your advisor can find a solution that works for both of you. Allan Norman, M.Sc., CIM,, is a chartered financial planner (CFP) with Atlantis Financial/IPC Investment Corp. This commentary is provided as a general source of information and is intended for Canadian residents only. The views and opinions expressed in this commentary may not necessarily reflect those of IPC Investment Corporation.
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