Financial Advisors! Good Bad Ugly!

[SASKFARMER3]

Every Saturday I get a kick out of reading the Leader Post. They have a part that runs national about a couple from different parts of Canada. The Advisor rates their retirement ready score.
It is hysterical to say the least. Better than reading the funny's.

Every week you have couple A who are nameless but live in Calgary as a example. They have two kids a home in Calgary and rental property, Their worried about the debt that their carrying but make real good money in Oil patch (ok that might not work so good) in Administration and take home $10,000 a month.
Funny their main asset is their home at $750,000.00 and rental $500,000.00. Rest Is made up of RRSP and small TFSA.
The guy today rates them retirement ready at a 4.5 out of 5.
What I find funny most weeks is the high value they put in over valued Home prices in the Cities. Yes in a perfect world they can live in a home pay for it all their life then sell and buy a condo in the last years with some cash extra to go into savings for last few years. Yes low interest rates help but a huge drop in home values and what all these scenarios are hooped. Hey it can happen look at Phoenix or other cities.

So here is my question, are lots of financial experts just experts. The farther away from home you go the better you are.

Who is good and who else thinks like me to much value for a lot is in their homes.

Yes we all need one but!

Any way happy Saturday off to Sled.

[TOM4CWB]

SF3,

QE and money printing causes real estate to increase in value... does not matter if it is farm land or city homes.

CurrencyDeflation will decrease all values in asset classes... to the extent of the deflation.

Standard issues and logical theory.

[hobbyfrmr]

A large part of the US real estate implosion was "phantom equity". Banks lent low interest money for houses to people who could barely afford to pay for them. Interest on real estate so all you had to do was pay the interest and you were living in a house for "free". The natural assumption that the property would only ever appreciate gave comfort to the borrowers. In a few years, the houses were revalued at higher prices (phantom equity) and the borrowers were allowed/encouraged to borrow against their house to get things and stuff. A weak market set in houses devalued and then lenders called in the loans.on the things and stuff. Those who could not pay got the boot.
You have to becareful with farmland because its kind of similar if this is your style. In my area farmland truly worth $1800/acre was selling for $2800/acre. All my properties next door jumped in value. I got to fantasizing about putting some farmland for new equipment. Didnt happen.

I digress, a financial advisor has value in helping advise you managing the assets you have.
As posted before I have never had much gains with mufual funds or stocks. I would have been better to buy another hopper for a bin, or extra fertilizer etc.
This is the first time in my life crude oil prices are absurdly low. When the barrel is worth more than the crude inside, it is time to buy stocks in a big solid oil company that will survive the next couple of year. Shell, Exxon, Suncor are my thoughts.
I am also starting to shop for a house in a city.

[hobbyfrmr]

It should have read "in the us , Interest on houses are tax deductable "

[Guest]

oil in 98 was around $12/bbl

[tmyrfield]

Financial advisers make money by taking your money and investing it. Of course they are going to tell you how good it could be. Like chem company telling you your canola will have a thicker bigger roots if you use their chem. well i tried it, tasted terrible. missus didn't notice anything different.
Like all advise you don't have to take it just use it to expand your broad range of world knowledge.

[farmaholic]

If I gave you $250, 000 to "invest"(for me) would you treat it the same as if it was your very own. Would you care(as much) if the investment didn't perform if it wasn't your cash? Would you expose the money(mine) to the same level of risk as you would your own?

[sumdumguy]

Can you get your money back when you need it? There have been a lot of ponzu schemes in that industry. Some people are very trusting, some are very trust-worthy, but who knows who's who?

[mcfarms]

Had the partners in a investment firm chasing me behalf of a bank that they worked with/for. the guy went right through his spiel and I told him I'll give you a million dollars, you can have half of what you make me for your fee, the catch was he had to guarantee the principle with his money. Haven't heard from him since.

[mcfarms]

Which was good I would have had to find a million dollars...

[iceman]

http://www.financialpost.com/m/wp/personal-finance/blog.html?b=business.financialpost.com/personal-finance/family-finance/if-couple-wants-to-retire-at-55-theyll-have-to-stick-with-their-same-old-boring-jobs&pubdate=2016-01-23

One loses a job take it to zero stars. Not to mention very very very long housing in a oil town. Very poor advertising for Rod Tyler of Regina.

Iceman Out

[SASKFARMER3]

Like I said its fun to read the Saturday paper and this is my fun read.
But its always their biggest investment and asset is their home.
If homes drop in Canada like phoenix most wont be freedom 55 it will be freedom 97.

[sumdumguy]

SF3, according to info from big city bank in Regina, all they need for down payment is 5% and interest as low as 2 3/4 %, and a job and they are good to go on a big shack. Now, that's security, isn't it?