How often do people actually hear from their bank advisor after opening an investment account?
Ive noticed something with a few people lately. They opened their investment account at a bank, met with an advisor once, picked some funds… and then basically heard nothing for years.
Sometimes the advisor whose name appears on the statement isn’t even the person who originally opened the account. They moved branches, got promoted, or left the bank, and the account was quietly passed to somebody else.
Maybe “orphaned” is too strong a word, but that’s kind of what it feels like.
This doesn’t automatically mean the investments are bad. There are good bank advisors and bad independent advisors too. But if someone is paying an annual management fee, I think it’s fair to ask what service they are actually receiving for it.
A few things I would probably check:
- Is the advisor on the statement still the person managing the account?
- Has anyone reviewed the investor’s goals, timeline or risk tolerance recently?
- Does the portfolio still match what the money is for?
- Are the recommended products being compared with alternatives outside that bank?
The last point is the one I struggle with. A bank advisor generally works within that institution’s product shelf. That doesn’t make them dishonest, but it does mean their starting point may be different from yours. You want the best fit available; they may only be able to recommend from what their institution offers.
I’m not saying everyone should move their investments away from a bank. Honestly, for some people the convenience and support may be worth the fees.
But if the account hasn’t been reviewed in three or four years, what exactly are those fees paying for?
For people who invest through a Canadian bank: how often does your advisor contact you, and do you feel you’re getting enough value for the fees?