I've noticed the many advertisements on investment fees over the last couple of years. I've seen the co-relation with clients asking more about such. I've had the conversation of bargain basement type pricing vs what I think the real question is----value. What do you get for what you pay for?
Do you have a starter home in the cheapest part of town? Why not? It's shelter that is required so why pay more than you have to. Where's the sense in paying more? What about if you want to live in a certain neighborhood and have your kids attend a certain school? What if it's closer to activities that are important to your family? Nonesense! Just stay in the cheapest neighborhood because you will save more money. Is it possible that the house in the desired area (more costly) could fit your family's needs better? Is it possible that in 20 years, it would have gained a higher value than the cheaper neighborhood?
Do you have the manual shift car with no air conditioning and wind up windows? Why not? Why pay more for something that gets you from point A to point B? It is cheaper, therefore you should be able to save more money. Do you value the automatic transmission? What about air conditioning, heated seats, stereo system, GPS etc? Why pay more? Let's talk value instead of price. Sometimes they are the same, most times no.
Is all your money in taxable or hard to reach instruments? During covid 19 is it a good time to withdraw funds from taxable instruments....RRSP? Not only have your funds dropped, you would pay a penalty for access? But I need it, I don't have a choice. Quite possible. What if it's your TFSA? Better, but once you use those funds, you won't be able to participate in any recovery. Emergency funds cash savings?....Better, you will need to replenish it after to be ready for the next emergency. Line of credit....Beats the RRSP but you will have to pay it down as well as the interest on a schedule.
What if you had an instrument with accessible cash that didn't reduce the funds but let you have access? What if you had control over when you pay it back, how much you pay and when you pay it back? What if like a line of credit, the amount you pay back becomes accessible as soon as you pay it back? What if you could access it without having to qualify with a credit check or debt ratio? What if the access could be non taxable? Proper planning with the right advisor is worth so much more to you than not.
This is what I help my clients with. This can be their most important asset at this time. Let's get you ready for the next crisis. When is it? How long will it be? Who knows? Let get prepared....peace of mind is priceless.