Ajax Ontario Financial Advisor Information

How Does a Financial Advisor in Ajax Get Paid?

Financial advisors in Ajax Ontario earn fees just like other financial advisors across Canada; through charging a percentage fee on the total assets they manage for you. For example, you have $200,000 managed by a financial advisor in South Ajax, they may charge you 2% of the $200,000 ($4000 per year) to manage your money. This fee is generally the same across financial advisors in Ajax Ontario; this means you will likely have similar fees using a financial advisor in Ajax as one in Pickering, Whitby, Oshawa, Brampton and Green River.

Can an Ajax Financial Advisor Make you Rich?

Generally, a good Ajax financial advisor will be more focused on helping you plan and manage risk with your money, while also helping to grow your wealth over-time. This means that if your risk tolerance is exceptionally high and you are trying to “get rich quick”, an advisor might not be very helpful. This type of strategy usually will carry immense amounts of risk, meaning financial advisors would generally not endorse it. 

Ajax Advisors will instead more likely try to help you “get rich slowly”, by hopefully earning you good and more predictable returns, which may also allow you to plan out your future better. 

What are the Main types of investments my financial advisor might hold on my behalf?

Stocks: by owning a stock, one is owning a share in a business. This means that as a shareholder, you will have ownership of the company, meaning that if the company does well, there is a good chance that over-time you may also do well. As a shareholder, companies may choose to invest the money they earn to grow, pay out money to you in the form of a dividend or return of capital, decreasing the number of shares in the company (and therefore increasing your ownership %), or buying other companies, among other options. 

Stocks usually carry more risk than an ETF or Mutual fund, depending on the type. This is because if the company does bad, its likely your stock price will fall, while if your holding an ETF or mutual fund, a stock doing bad would only lower the value by a little (depending on the number of holdings in the fund). This also will work both ways however, as if a stock does well, a mutual fund or ETF are likely to not perform as well.   

Bonds: When you own a bond, this means that you have lended or own the loan given out to companies at certain time periods for certain lengths of time. This means that just like a loan a bank does, the company will pay you interest, and at the end of the time period, they will be responsible for paying you back. This makes bonds popular amongst risk averse accounts. 

Private Investment Funds: Your advisor may use these funds as a way for you to get exposure to different types of assets. This can include; Real Estate Funds, which may own commercial, office, residential, or industrial real estate among others, Venture Capital Funds:which will give you exposure to companies that are just starting out and may have strong growth potential, and Private Equity Funds: this is when a manager will purchase assets or gusinesses on your behalf, and run them while trying to generate returns for owners. 

Mutual Funds & ETFs:These assets will grant you exposure to many assets within one fund, meaning that you will be diversified and have ownership of each asset in the mutual fund or etf. The biggest difference between an ETF and Mutual fund is an ETF usually will be cover an industry or sector of assets, while mutual funds are more likely to act as a diversified portfolio. As well, ETF’s are easier to sell and buy, as they are traded on stock exchanges. Finally, ETF’s can have lower management expense fees.

Can an Ajax Financial Advisor steal your Money?

An Ajax financial advisor will have access to your money. However, there are many checks and balances in place to prevent something like this from happening. Something that can be important for you when finding the right advisor can be interviewing them and asking questions that allow you to feel confident in having them manage your money, to looking into their reputation through reviews, and even looking into their designations and experience. 

As Ontario and potentially other provinces in Canada look to tighten regulations on who can be a financial advisor, this should only help you feel more confident in an advisor managing your money.