Scott Zimmer - Terra Geothermal Inc.
Thank you for helping us. You and the team at The Peacock Sheridan Group were able to share a level of planning that is definitely innovative. Thanks again. Scott.
Chris & Leah Zimmermann - Big Slick Custom Made
When we first started talking to Dustin 3 years ago, we were just getting our family going and thought we had our planning in check. Dustin was able to share some innovative ideas that did not sacrifice our monthly spending and enabled us to protect our needs and start saving for the future. Now that we can spend less time focusing on our financial affairs we can direct our energy towards our business, which in turn increases our bottom line. Chris & Leah Zimmermann.
Rob Dion and Lee Ivans - The Dion Ivans Group
Being in a partnership in today's business world poses some financial challenges if the proper planning is not properly addressed. Dustin was able to have an open discussion with us regarding the "what if's" of a partnership. He was able to illustrate our potential challenges in an easy to follow manor and provided a solution that fit our overall objectives. Rob Dion & Lee Ivans.
Jordan Tetreau and Andrea Mikkelson - Mint Property Group.
Since we began working with Dustin our business has seen significant growth. Dustin has taken care of all our partnership planning and has been there for many changes along the way - corporate and personal. In turn we have been able to focus on what we know best, recreational real estate sales and marketing. Jordan.
Dr. Brett R. Phillips, B.Sc., L.Ac., N.D.
Dustin Serviss has provided me tremendous help with my business planning. His insight and strategic thinking has put me ahead of the curve in both my business awareness and monetary gains. In the decade that I have known Dustin, he has shown me nothing but hard work, confidence and dedication. In my opinion, Dustin’s breathe of knowledge and skills are far superior to that of the regular financial planner. Brett.
Greg Carlin and Rocky Becker - Partners in Grayhawk Industries Ltd.
Dustin was a pleasure to deal with regarding our partnership insurance. His extreme attention to detail and his energetic personality made business dealings a refreshing experience. Greg.
Troy Hunnie - Owner of Spincaster Productions Inc.
Dustin has a sense of looking ahead and making sure nothing gets missed. If there is a way to get things done he will find it. He is an extremely hard worker and will make sure your best interest is always kept at the forefront. Troy.
Mark and Terry Oatway - Owners of Oatway Contracting.
The thing that makes Dustin Serviss's practice, is his persistency and his personality. The experience we had with Dustin was enjoyable and accommodating to our needs. He has an amazing amount of patience as well as an ability to illustrate the need for certain coverage's when running a business. Terry.
Ryan and Jaime Dion
Dustin was able to refer us to a strategy that; pays our mortgage down significantly faster, lowers our monthly mortgage payments and could save us approximately $100,000. This strategy allowed us to obtain; life insurance, an investment plan and a better lifestyle month to month. From a financial planning standpoint, by implementing this strategy Dustin was able to improve our financial picture as well as improve our daily living. Ryan.
Sarah Zimmermann - SugarCup Cupcakes
I have known Dustin for many years and always respected his drive to help people. I believe by asking me a lot of questions regarding my business he was able to build me a plan that fit my situation now and provides ample growing room for my future business growth. As a business in the infant stages a proper foundation is key and Dustin has given me that confidence to focus on my business and not on my financial planning. Sarah.
Tuesday, July 28, 2009
Wednesday, July 22, 2009
Market Update from Kelowna
VPI Dixon Mitchell Quarterly Commentary
This was the 7th quarter for the VPI Dixon Mitchell Canadian Balanced Pool, with steady growth in assets since its launch in early October 2007. For the quarter ended June 30th, the Canadian Balanced Pool has returned 11.4%, and had a yield of 4% at quarter end.
Lead by continued strength in the heavily weighted Financial and Energy sectors, the recovery which began late in March continued throughout the second quarter, leaving the TSX Index with an impressive 20% gain for the quarter. With weak underlying fundamentals, we remain unconvinced that recent gains in the Energy and Materials sectors are sustainable, and so continue to be only modestly weighted in these sectors.
Given the tepid outlook for the US$, we took advantage of some strong gains in our foreign holdings and meaningfully reduced our weighting in this area. We also increased our exposure to defensive Canadian names by adding Pembina Pipelines and Shaw Communications. Pembina has long-term contracts to move oil from northern Alberta to Edmonton, with little exposure to oil price fluctuations. It should benefit from higher volumes going forward as more tar-sands projects come on-line. Similarly, we view Shaw as a communications “pipeline” which delivers media and internet content through its cable network. It too should benefit as more content and applications such as video-on-demand are delivered through its effectively monopolistic network.
Our decision to increase our weighting in investment grade corporate bonds in the first quarter, which had some of the most attractive valuations relative to government bonds in the past 30 years, greatly benefited the fixed income portion of the portfolio during the quarter. While we saw the spreads on corporate bonds tighten significantly over the quarter, the current blended yield on the corporates is still about 1.5% over the governments.
Dixon Mitchell’s investment process is orientated to creating portfolios which produce high and sustainable cash flows. Consistent with this approach, even in the context of the current challenging economic environment, several companies in the portfolio have increased their dividends in 2009. We believe dividend increases reflect management’s confidence in the future long-term outlook for their companies.
We continue to focus our efforts on finding companies with sustainable competitive advantages which we can purchase at reasonable valuations to free cash flow. We remain confident this will provide our clients solid returns over the long run with limited downside risk.
Information provided by: Rob McConnachie, CFA
Dixon Mitchell Investment Counsel, Inc.
This was the 7th quarter for the VPI Dixon Mitchell Canadian Balanced Pool, with steady growth in assets since its launch in early October 2007. For the quarter ended June 30th, the Canadian Balanced Pool has returned 11.4%, and had a yield of 4% at quarter end.
Lead by continued strength in the heavily weighted Financial and Energy sectors, the recovery which began late in March continued throughout the second quarter, leaving the TSX Index with an impressive 20% gain for the quarter. With weak underlying fundamentals, we remain unconvinced that recent gains in the Energy and Materials sectors are sustainable, and so continue to be only modestly weighted in these sectors.
Given the tepid outlook for the US$, we took advantage of some strong gains in our foreign holdings and meaningfully reduced our weighting in this area. We also increased our exposure to defensive Canadian names by adding Pembina Pipelines and Shaw Communications. Pembina has long-term contracts to move oil from northern Alberta to Edmonton, with little exposure to oil price fluctuations. It should benefit from higher volumes going forward as more tar-sands projects come on-line. Similarly, we view Shaw as a communications “pipeline” which delivers media and internet content through its cable network. It too should benefit as more content and applications such as video-on-demand are delivered through its effectively monopolistic network.
Our decision to increase our weighting in investment grade corporate bonds in the first quarter, which had some of the most attractive valuations relative to government bonds in the past 30 years, greatly benefited the fixed income portion of the portfolio during the quarter. While we saw the spreads on corporate bonds tighten significantly over the quarter, the current blended yield on the corporates is still about 1.5% over the governments.
Dixon Mitchell’s investment process is orientated to creating portfolios which produce high and sustainable cash flows. Consistent with this approach, even in the context of the current challenging economic environment, several companies in the portfolio have increased their dividends in 2009. We believe dividend increases reflect management’s confidence in the future long-term outlook for their companies.
We continue to focus our efforts on finding companies with sustainable competitive advantages which we can purchase at reasonable valuations to free cash flow. We remain confident this will provide our clients solid returns over the long run with limited downside risk.
Information provided by: Rob McConnachie, CFA
Dixon Mitchell Investment Counsel, Inc.
Sunday, July 19, 2009
Serviss's Millionaire Comment for Kelowna
Set a goal to become a millionaire for what it makes of you to achieve it. Do it for the skills you have to learn and the person you have to become. Do it for what you’ll end up knowing about the marketplace, what you’ll learn about the management of time and working with people. Do it for the ability of discovering how to keep your ego in check. For what you have to learn about being benevolent. Being kind as well as being strong. What you’ll have to learn about society and business and government and taxes and becoming an accomplished person to reach the status of millionaire is what’s valuable. Not the million dollars. – These words were written by Earl Shoaf.
Friday, July 3, 2009
Life Insurance & Investment - Serviss Facebook one liners
- Love is one long sweet dream, and marriage is the alarm clock. Do not let an illness or passing be your alarm clock to realize the value of insurance, contact Serviss before you wake up.
- ....yes hello... I'll get, 1 vente earl grey 2 pump sugar free tea serviss and a banana loaf.
-See what other successful Entrepreneurs are taking advantage of - http://serviss.ca/testimonials.html
-What happens if you get scared half to death twice...Regardless, your family will never think you had too much life insurance.
-It is simple, Serviss protects you from living too long, dying too early and if you become disabled.
-www.serviss.ca reaches 90,000 website hits. Who knew so many people were interested in Life Insurance and Wealth Management Serviss's.
-There is the right way, the wrong way and the Serviss way. (Inspired by the Generals Daughter)
-The World's Serviss Marketplace.
-Sell the Serviss not the Steak
-Serviss, it's everywhere you wanna be
-Warning! Serviss may be closer than it appears
-With Serviss, It's Personal
-Serviss is really my last name. Google it
-...Blue Horse Shoe Loves Serviss Steel...
-Chase excitement and you'll find Serviss.
-Hasta la Servista, baby
-There is good Serviss and there is bad Service, period, that's the distinction.
-The square root of Chuck Norris is pain. The square root of Serviss is your piece of mind.
-If passion drives you, let Serviss hold the reins.
-Marriage is like a violin. After the music is over, you still have the strings. Get your strings inline with Serviss.
-Money can't buy happiness, but it and Serviss can help you look for it quicker, in a convertible.
-Get busy livin' or get busy dyin' either way get life insurance with Serviss. (Inspired by Shawshank)
-"Serviss" Busy = Busier than a three legged cat in a dry sand box.
-Serviss is never to busy for your referrals. You refer, you are rewarded.
-CAUTION! Serviss in progress
-Whatever you are into, get into this insurance, investment and home refinancing Serviss.
-This Serviss is creating a fabric of the future.
-Canadian by birth. Serviss by choice
-Say'ELLO TO MA little friend Serviss.
-Love is holding hands in the street. Marriage is holding arguments in the street. Mitigate your financial arguments with Serviss.
-A woman has the last word in any argument. Anything a man says after that is the begining of a new argument - Serviss.
-Serviss's Eleven
-Who died and made you Serviss.
-Hooked on Serviss worked for me.
-Have your Serviss and eat it too.
-In Serviss and in health, till Serviss due us part
-True Serviss either has to be first, best, or different.
-The candy Serviss that melts in your mouth - not in your hand.
-Before marriage, a man yearns for the woman he loves. After marriage, the 'Y' becomes silent. Seek Serviss for a plan.
-Serviss is as Serviss does... and that's all I have to say about that.
-This life insurance Serviss is to die for.
-The only day not Serviss friendly is the day with no "y" in it.
-How do you spell financial relief. S-E-R-V-I-S-S.
-Fathers of daughters, don't be nervous, it's just Serviss.
-You had me at Serviss. (Submitted by B.M.) - Follow Serviss on Twitter -Dustin T. 'Serviss'
-Sheer, Seamless, Heavenly fit Serviss. (Submitted by A.H.)
-Lose the carbs. Not the Serviss
-Will you be ready" for this Serviss
-I will lay my Serviss down on the table beside anyone's.
-Do finances have you as confused as a baby in a topless bar - Get Serviss.
-Knowledge is power, but Serviss & enthusiasm pull the switch.
-Serviss, it keeps going and going and going
-To sell unto others, as you would have others sell unto you. (Serviss-3:16)
-A yardstick for Serviss.
-... S e r v i s s ... we have a problem ... over.
-The world will never be the same once you've seen it through the eyes of Serviss.
-Serviss... it's viral
-What happens with Serviss. Stays with Serviss. Your 'financial' information is always 100% confidential.
-When in doubt... Control, Alt, Serviss.ca.
-Big wheel keep on turnin. Proud Serviss keep on burnin. (Submitted by M.M.)
-Burning ring of Serviss.
-Serviss is like air... It's only a big deal if you don't get any.
-The best part of waking up is Serviss in your cup.
-Serviss, love it and/or leave it. Either way, client's will always come first.
-Your financial plan's spell check - Serviss
-...Yes... Can I please get, 1 Xtra Large, Xtra Hot, Serviss Serviss... and an Everything bagel (not toasted)...
-Splash Serviss All Over.
-Premium Triple Distilled Serviss
-Oh my my, oh hell yes hunnie put on that Serviss dress.... (harmonica & electric guitar)
-A Serviss you can ride on.
-151 Countries, One Serviss.
-Creating a stir with the name Serviss... or could it be something else?
-Your Life Insurance, Investment & Home Refinancing Serviss. (I know this one is boring, but a Serviss none the less)
-Servissing you today, tomorrow, day and night.
-Serviss is the triumph of imagination over intelligence.
-Never confuse motion with action - Serviss
-The Serviss mind, once stretched by a new idea, never regains its original dimensions.
-Absence sharpens love, Serviss strengthens it
-It is high time that the ideal of success should be replaced by the ideal of Serviss.
-24 hr oil lube and Serviss
-Serviss oil lube and filter
-Pain is Serviss leaving the body. Oh thats a good one I think I've got a side stitch.
-Keep fit and have Serviss.
-i see serviss people...
-The One. The Only. Serviss.ca
-Providing Serviss that is not just the best, but legendary.
-Price & Quality only get you into the game. Serviss wins you the game.
-People expect good Serviss, but only Serviss is willing to give it.
-Products can be duplicated. Serviss at this level cannot.
-Serviss is not a department, it's an attitude.
-Value is the essence of Serviss.
-Got Service. Get Serviss
-When the going gets tough, the tough get SERVISS!
-I don't get even, I get Serviss
-Lifes a dance with Serviss
-Building it one Serviss at a time
-As far as the Serviss can see
-You'll love the way your Serviss feels
-Make a difference, Serviss.
-Adult Serviss
-Serviss sells
-H E R E ' s Serviss!!!
-Take advice from those who have earned it
-Are you renting your life from someone else... Serviss your life and own it.
-Life is like a box of Serviss, difference is, you know what your gonna get inside.
-There is only one man with the true Serviss.
-Lose the carbs not the Serviss
-Warning! Serviss may be closer than it appears
- ....yes hello... I'll get, 1 vente earl grey 2 pump sugar free tea serviss and a banana loaf.
-See what other successful Entrepreneurs are taking advantage of - http://serviss.ca/testimonials.html
-What happens if you get scared half to death twice...Regardless, your family will never think you had too much life insurance.
-It is simple, Serviss protects you from living too long, dying too early and if you become disabled.
-www.serviss.ca reaches 90,000 website hits. Who knew so many people were interested in Life Insurance and Wealth Management Serviss's.
-There is the right way, the wrong way and the Serviss way. (Inspired by the Generals Daughter)
-The World's Serviss Marketplace.
-Sell the Serviss not the Steak
-Serviss, it's everywhere you wanna be
-Warning! Serviss may be closer than it appears
-With Serviss, It's Personal
-Serviss is really my last name. Google it
-...Blue Horse Shoe Loves Serviss Steel...
-Chase excitement and you'll find Serviss.
-Hasta la Servista, baby
-There is good Serviss and there is bad Service, period, that's the distinction.
-The square root of Chuck Norris is pain. The square root of Serviss is your piece of mind.
-If passion drives you, let Serviss hold the reins.
-Marriage is like a violin. After the music is over, you still have the strings. Get your strings inline with Serviss.
-Money can't buy happiness, but it and Serviss can help you look for it quicker, in a convertible.
-Get busy livin' or get busy dyin' either way get life insurance with Serviss. (Inspired by Shawshank)
-"Serviss" Busy = Busier than a three legged cat in a dry sand box.
-Serviss is never to busy for your referrals. You refer, you are rewarded.
-CAUTION! Serviss in progress
-Whatever you are into, get into this insurance, investment and home refinancing Serviss.
-This Serviss is creating a fabric of the future.
-Canadian by birth. Serviss by choice
-Say'ELLO TO MA little friend Serviss.
-Love is holding hands in the street. Marriage is holding arguments in the street. Mitigate your financial arguments with Serviss.
-A woman has the last word in any argument. Anything a man says after that is the begining of a new argument - Serviss.
-Serviss's Eleven
-Who died and made you Serviss.
-Hooked on Serviss worked for me.
-Have your Serviss and eat it too.
-In Serviss and in health, till Serviss due us part
-True Serviss either has to be first, best, or different.
-The candy Serviss that melts in your mouth - not in your hand.
-Before marriage, a man yearns for the woman he loves. After marriage, the 'Y' becomes silent. Seek Serviss for a plan.
-Serviss is as Serviss does... and that's all I have to say about that.
-This life insurance Serviss is to die for.
-The only day not Serviss friendly is the day with no "y" in it.
-How do you spell financial relief. S-E-R-V-I-S-S.
-Fathers of daughters, don't be nervous, it's just Serviss.
-You had me at Serviss. (Submitted by B.M.) - Follow Serviss on Twitter -Dustin T. 'Serviss'
-Sheer, Seamless, Heavenly fit Serviss. (Submitted by A.H.)
-Lose the carbs. Not the Serviss
-Will you be ready" for this Serviss
-I will lay my Serviss down on the table beside anyone's.
-Do finances have you as confused as a baby in a topless bar - Get Serviss.
-Knowledge is power, but Serviss & enthusiasm pull the switch.
-Serviss, it keeps going and going and going
-To sell unto others, as you would have others sell unto you. (Serviss-3:16)
-A yardstick for Serviss.
-... S e r v i s s ... we have a problem ... over.
-The world will never be the same once you've seen it through the eyes of Serviss.
-Serviss... it's viral
-What happens with Serviss. Stays with Serviss. Your 'financial' information is always 100% confidential.
-When in doubt... Control, Alt, Serviss.ca.
-Big wheel keep on turnin. Proud Serviss keep on burnin. (Submitted by M.M.)
-Burning ring of Serviss.
-Serviss is like air... It's only a big deal if you don't get any.
-The best part of waking up is Serviss in your cup.
-Serviss, love it and/or leave it. Either way, client's will always come first.
-Your financial plan's spell check - Serviss
-...Yes... Can I please get, 1 Xtra Large, Xtra Hot, Serviss Serviss... and an Everything bagel (not toasted)...
-Splash Serviss All Over.
-Premium Triple Distilled Serviss
-Oh my my, oh hell yes hunnie put on that Serviss dress.... (harmonica & electric guitar)
-A Serviss you can ride on.
-151 Countries, One Serviss.
-Creating a stir with the name Serviss... or could it be something else?
-Your Life Insurance, Investment & Home Refinancing Serviss. (I know this one is boring, but a Serviss none the less)
-Servissing you today, tomorrow, day and night.
-Serviss is the triumph of imagination over intelligence.
-Never confuse motion with action - Serviss
-The Serviss mind, once stretched by a new idea, never regains its original dimensions.
-Absence sharpens love, Serviss strengthens it
-It is high time that the ideal of success should be replaced by the ideal of Serviss.
-24 hr oil lube and Serviss
-Serviss oil lube and filter
-Pain is Serviss leaving the body. Oh thats a good one I think I've got a side stitch.
-Keep fit and have Serviss.
-i see serviss people...
-The One. The Only. Serviss.ca
-Providing Serviss that is not just the best, but legendary.
-Price & Quality only get you into the game. Serviss wins you the game.
-People expect good Serviss, but only Serviss is willing to give it.
-Products can be duplicated. Serviss at this level cannot.
-Serviss is not a department, it's an attitude.
-Value is the essence of Serviss.
-Got Service. Get Serviss
-When the going gets tough, the tough get SERVISS!
-I don't get even, I get Serviss
-Lifes a dance with Serviss
-Building it one Serviss at a time
-As far as the Serviss can see
-You'll love the way your Serviss feels
-Make a difference, Serviss.
-Adult Serviss
-Serviss sells
-H E R E ' s Serviss!!!
-Take advice from those who have earned it
-Are you renting your life from someone else... Serviss your life and own it.
-Life is like a box of Serviss, difference is, you know what your gonna get inside.
-There is only one man with the true Serviss.
-Lose the carbs not the Serviss
-Warning! Serviss may be closer than it appears
Thursday, July 2, 2009
ARM Mortgages, How DSC works, Kelowna Camping & Dr Nick Bontis
Hello my friend,
I hope this email finds you in good summer time spirits.
1) Upcoming Mortgage Wave
2) Do you have 'DSC' funds in your investment portfolio?
3) Dr. Nick Bontis
4) Local camping hot spots
1) Mortgage reset wave about to start in US (see attached image - Please remember this is US not Canadian figures)...
Has the US learnt enough to stick handle through the next mortgage wave. I stumbled on this back in February on 60 minutes and it has been something I have been watching ever since. Also attached is a link illustrating the Subprime issues and what is upcoming for the next wave of Option Adjustable Mortgages. Please remember in Canada we do not have mortgages similar to these but I do believe one needs to keep an eye on the US from time to time.
Click here to view a Bloomberg Article
2) Sample from the attached article...
The more your money grows the more commission the advisor is receiving. In a new DSC type investment the advisor is compensated largely upfront (before they even do anything, really) and then trickled a commission over time… who do you think is going to pay attention more in the long run. Who is building an actual business and who is the salesman…
Who is building an actual business and who is the salesman…
Deferred Sales Charge Explained (DSC)
To explain my point I will use Investors Group (IG) as an example. I only use them as they have an easy to explain business model. I have nothing against IG and wish only here to showcase how different models look.
If you invest $100,000 into an IG (DSC) fund and you withdrew your money in the first 2 years you would be paying 5.5% in fees based on the $100,000. If the market went down since you invested and you had a market value of $95,500 in your account, you would net at the end of the day $90,000 ($100,000 – market loss of $4,500 - $5,500 in fees).
The advisor on this transaction would have made anywhere between approximately 3.0% - 4.5% commission initially once the money was deposited or transferred, depending on his or her years in the business… The advisor will also receive a 0.5% trailer commission every year the money stays in house. Gets you thinking, doesn’t it… You can see how the fees play out for the remaining years.
Redemption fees at Investors Group
When redeemed Fee %
Within two years 5.5
During third year 5.0
During fourth year 4.5
During fifth year 4.0
During sixth year 3.0
During seventh year 1.5
After seven years None
Source: Investors Group Inc.
These DSC type funds used to be very popular in the past and some advisors still actively use them as they believe that DSC funds like this keep their clients locked in through rough times and it helps keep the client focused on the long term… I will not speak for anyone else but I personally like having options, while maintaining long term focus.
There are other models out there that could be more appealing. One of them is called low load funds (LL). This allows you to invest your money in sound investments, allows the advisor to get paid for his/her efforts and if you need to take your money out for an emergency or life change, the fees will not cause you to claim on your life insurance. Here is a Low Load (LL) example from a company called Value Partners Investments.
Redemption fees at Value Partners Investments
When redeemed Fee %
Within 1st year 3.0
During 2nd year 2.0
During 3rd year 1.0
The commission on Value Partners Low Load is between 1.75 – 2.0% once it makes it to the advisor. Some advisors may vary based on their dealer but you get a rough idea of the difference. As well the advisor would receive approximately a 0.8% renewal commission once the 3 year schedule was satisfied.
Low Load gives you and the advisor a win win. You the investor has an incentive to stay invested for at least three years to deter you from trying to time the market with your RRSP’s and retirement nest eggs. The advisor is compensated for preparing your proposal, monitoring your holdings and staying in tune with the overall economy. I guess the third win is; if you need the money in an emergency you can access it without big penalties.
If an advisor is paid less in the upfront but a little more over time and that renewing pay is based on the overall size of the portfolio, you can bet that later advisor is going to pay more attention to what your money is invested in. The more your money grows the more commission the advisor is receiving. In a DSC situation the advisor is compensated largely upfront (before they even do anything, really) and then trickled a commission over time… who do you think is going to pay attention more in the long run. Who is building an actual business and who is the salesman…
3) Dr. Nick Bontis - I recently attended a conference in Indianapolis Indiana. There were a host of top notch professional speakers, presenters and comedians. One that I wanted to share with you is Dr. Nick Bontis. He provides an interesting spin on the economy and the evolution of technology in our society. Attached is a 4 minute video of him sharing his thoughts. (If link doesn't work - YouTube Search - Dr. Nick Bontis Keynote Speaker)
Click here to view a great clip
4) Camping Hot Spots close to Kelowna (within 90 min drive)
- Owls Nest on Kal Lake - I recently stayed here and was very impressed with the value. Clean overall site, clean bathrooms, hot showers, great beach and boat access (launch). Power, sewer and water on most sites and the overall feel was great for adults and children. There is a great fire pit down on the water for relaxing... and there were minimal mosquito's which is always nice. Also for all you hardcore cell phone users out there, there is great cell service and it is close to town if you need to make that special trip to take care of business.
- Mable Lake (Forestry Site) - This is definitely a little more rugged. Great fire pits in the sites, great access to the beach and there is a boat launch. The bonus to this site is if you are an outdoors type the mountains are right there. If you are into ATV'ing, hiking, mountain biking or showing the children how to shoot pop cans with a pellet gun, this is the place. Dogs are allowed and the overall feel was very relaxing.
- Cathedral Provincial Park - if you are into spectacular hiking... look no further!
Have a great summer and as always if you, your co-workers, friends or family have any insurance or wealth management questions I am never too busy.
Dustin
www.serviss.ca
Dustin Serviss, RHU
Associate
The Peacock Sheridan Group
205-1180 Sunset Drive Phone 250.869.1451
Kelowna BC V1Y 9W6 Fax 250.869.1452
I hope this email finds you in good summer time spirits.
1) Upcoming Mortgage Wave
2) Do you have 'DSC' funds in your investment portfolio?
3) Dr. Nick Bontis
4) Local camping hot spots
1) Mortgage reset wave about to start in US (see attached image - Please remember this is US not Canadian figures)...
Has the US learnt enough to stick handle through the next mortgage wave. I stumbled on this back in February on 60 minutes and it has been something I have been watching ever since. Also attached is a link illustrating the Subprime issues and what is upcoming for the next wave of Option Adjustable Mortgages. Please remember in Canada we do not have mortgages similar to these but I do believe one needs to keep an eye on the US from time to time.
Click here to view a Bloomberg Article
2) Sample from the attached article...
The more your money grows the more commission the advisor is receiving. In a new DSC type investment the advisor is compensated largely upfront (before they even do anything, really) and then trickled a commission over time… who do you think is going to pay attention more in the long run. Who is building an actual business and who is the salesman…
Who is building an actual business and who is the salesman…
Deferred Sales Charge Explained (DSC)
To explain my point I will use Investors Group (IG) as an example. I only use them as they have an easy to explain business model. I have nothing against IG and wish only here to showcase how different models look.
If you invest $100,000 into an IG (DSC) fund and you withdrew your money in the first 2 years you would be paying 5.5% in fees based on the $100,000. If the market went down since you invested and you had a market value of $95,500 in your account, you would net at the end of the day $90,000 ($100,000 – market loss of $4,500 - $5,500 in fees).
The advisor on this transaction would have made anywhere between approximately 3.0% - 4.5% commission initially once the money was deposited or transferred, depending on his or her years in the business… The advisor will also receive a 0.5% trailer commission every year the money stays in house. Gets you thinking, doesn’t it… You can see how the fees play out for the remaining years.
Redemption fees at Investors Group
When redeemed Fee %
Within two years 5.5
During third year 5.0
During fourth year 4.5
During fifth year 4.0
During sixth year 3.0
During seventh year 1.5
After seven years None
Source: Investors Group Inc.
These DSC type funds used to be very popular in the past and some advisors still actively use them as they believe that DSC funds like this keep their clients locked in through rough times and it helps keep the client focused on the long term… I will not speak for anyone else but I personally like having options, while maintaining long term focus.
There are other models out there that could be more appealing. One of them is called low load funds (LL). This allows you to invest your money in sound investments, allows the advisor to get paid for his/her efforts and if you need to take your money out for an emergency or life change, the fees will not cause you to claim on your life insurance. Here is a Low Load (LL) example from a company called Value Partners Investments.
Redemption fees at Value Partners Investments
When redeemed Fee %
Within 1st year 3.0
During 2nd year 2.0
During 3rd year 1.0
The commission on Value Partners Low Load is between 1.75 – 2.0% once it makes it to the advisor. Some advisors may vary based on their dealer but you get a rough idea of the difference. As well the advisor would receive approximately a 0.8% renewal commission once the 3 year schedule was satisfied.
Low Load gives you and the advisor a win win. You the investor has an incentive to stay invested for at least three years to deter you from trying to time the market with your RRSP’s and retirement nest eggs. The advisor is compensated for preparing your proposal, monitoring your holdings and staying in tune with the overall economy. I guess the third win is; if you need the money in an emergency you can access it without big penalties.
If an advisor is paid less in the upfront but a little more over time and that renewing pay is based on the overall size of the portfolio, you can bet that later advisor is going to pay more attention to what your money is invested in. The more your money grows the more commission the advisor is receiving. In a DSC situation the advisor is compensated largely upfront (before they even do anything, really) and then trickled a commission over time… who do you think is going to pay attention more in the long run. Who is building an actual business and who is the salesman…
3) Dr. Nick Bontis - I recently attended a conference in Indianapolis Indiana. There were a host of top notch professional speakers, presenters and comedians. One that I wanted to share with you is Dr. Nick Bontis. He provides an interesting spin on the economy and the evolution of technology in our society. Attached is a 4 minute video of him sharing his thoughts. (If link doesn't work - YouTube Search - Dr. Nick Bontis Keynote Speaker)
Click here to view a great clip
4) Camping Hot Spots close to Kelowna (within 90 min drive)
- Owls Nest on Kal Lake - I recently stayed here and was very impressed with the value. Clean overall site, clean bathrooms, hot showers, great beach and boat access (launch). Power, sewer and water on most sites and the overall feel was great for adults and children. There is a great fire pit down on the water for relaxing... and there were minimal mosquito's which is always nice. Also for all you hardcore cell phone users out there, there is great cell service and it is close to town if you need to make that special trip to take care of business.
- Mable Lake (Forestry Site) - This is definitely a little more rugged. Great fire pits in the sites, great access to the beach and there is a boat launch. The bonus to this site is if you are an outdoors type the mountains are right there. If you are into ATV'ing, hiking, mountain biking or showing the children how to shoot pop cans with a pellet gun, this is the place. Dogs are allowed and the overall feel was very relaxing.
- Cathedral Provincial Park - if you are into spectacular hiking... look no further!
Have a great summer and as always if you, your co-workers, friends or family have any insurance or wealth management questions I am never too busy.
Dustin
www.serviss.ca
Dustin Serviss, RHU
Associate
The Peacock Sheridan Group
205-1180 Sunset Drive Phone 250.869.1451
Kelowna BC V1Y 9W6 Fax 250.869.1452
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