Jun 10
22

Who REALLY Benefits from an Investment Loan

5 Comments

by Dave Peniuk

One of the big questions I always ask myself when considering advice I am getting is:

WHO BENEFITS FROM THIS ADVICE?

Sometimes the answer is the person giving the advice will benefit just as much as I will … and that is ok as long as I know that. I just want to understand where the advice is coming from.

Other times advice is given with probably the intent of helping someone out but with the real implication of helping the advice giver more than the person receiving (and taking) the advice. One of those situations is when it comes to taking out a $50,000 investment loan to put into your RRSP fund to then purchase mutual funds with.

I know an awful lot of people who’ve done this on the advice of their financial advisor and I ask you … who has really made more money from this transaction? In the case of my friends, I can tell you it wasn’t them.

If you liked this post you might also enjoy the little rant I went on a month or so ago:

It’s Time to Get Serious About Your Investments

Oh – and I know there are a lot of folks interested in our yellow letter campaign. We just dropped another 250 letters in the mail but this time they are a little more formal. We’ve stuck with the handwritten and personally addressed envelope but moved to a more formal and professional letter inside. We fully expect this to reduce the number of calls we receive but we hope it ultimately increases the number of conversions we get (people who call that do a deal with us). We’ll give you an update on how that’s working for us really soon!

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Posted in Real Estate Investing Real Estate Investing Video Tips RRSP Investing by Rev N You 5 Comments

5 Responses to "Who REALLY Benefits from an Investment Loan"

  • Shae says:
    June 23, 2010 at 2:23 am

    Preach it, Dave! This is soo true. Very valuable advice.

    By the way, last week we sent out 200 letters with handwritten letters too. We haven’t received any calls yet, but we’ll see how it goes. We fully anticipated having less calls since the majority of other calls were from curious, scared, or pissed off people….however no phone calls yet. I think we need to stay consistent and keep mailing in this way, but its hard to know for sure. I keep saying to myself test, test, test.
    Shae´s last [type] ..Cha Ching! We closed.

    [Reply]

  • Dave Peniuk says:
    June 23, 2010 at 3:51 am

    Oh I DO love to preach Shae! But in this case, hopefully I make more people aware just how often the financial system can take advantage, willfully or not, of most folks. It’s why I control 95% of my money/investments – I just can’t hand it over to a financial institution when I see so many of my friends, family, colleagues losing 50% of the value of their investments who have handed it over and taken the “advice” of an “advisor”.

    As for the letters – good stuff! We will let you know how our’s turn out as well! Yes, TEST TEST TEST – so important!

    Thanks again for your comments Shae – always appreciated!

    [Reply]

  • Cameron says:
    June 24, 2010 at 6:07 am

    I would recommend your people check the fine print on their investment loan…..I know it is strongly discouraged to redeem or transfer out the investment to a SDRSP account when the investment is leveraged…but I know they can not force you to pay back the loan.

    [Reply]

  • Dave Peniuk says:
    June 24, 2010 at 1:41 pm

    Good point Cameron! See, once again, a Financial Advisor may be giving poor advice to my JV Partners. I personally thought it was weird that they “were not allowed to sell their mutual funds and transfer them without paying off the loan”. But, I will go back to them and ask them to obtain the loan documents and go through it.

    Aaaargh – WHY do the Banks make it so hard to take control of our OWN money? Oh yeah, it’s cuz the Banks want to use it to make money for themselves! Yeesh!

    Thanks Cameron!

    [Reply]

  • Who’s Counting Your Beans? –real estate investing made easier says:
    October 17, 2010 at 3:12 am

    [...] for you and proactively making suggestions to help you achieve your goals and grow your business? Do they have your best interests in mind when they give you advice? Are they doing what you are doing or do they work almost exclusively with other people just like [...]

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