The old timers had financial advisers through banks or wealth management companies. They sat down with you and gave you some 6% return rate graph until you reach 65. One and done. Maybe every once in a while they contact you to re balance a little if you have a large asset. For most they hardly bother. You either have to track them down to tell them exactly what you want and still you likely ended up being told that you need to contribute more money. There is very little intelligence built in the process, especially considering you have been paying 1-2% of the entire portfolio.
The old way makes no sense because
- For millennials, how many times career changes you may have to make before 65? Let alone how many jobs.
Jobs with a pension plan or even company matching RRSP/401K are harder and harder to find.
Interest rate has been low for decades = Bonds, GIC and saving options are mostly lower than inflation
- Rise of robot advisers and other AI/ML technologies
Trading platforms are getting cheaper and easier to use for this tech generation
Level 2 data is more comprehensive and affordable
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