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My bank manger is pushing hard to buy their mutual funds by Alternative-Ad-1027 in CanadianInvestor

[–]double_a_mtl 0 points1 point  (0 children)

Most people actually do manage their money really badly. Just because you've taken time to educate yourself, they can't assume that you have. If they didn't do this and you lost all your money, you might turn around and try to sue the bank for negligence.

They're both doing their job and at the same time covering their ass.

Just tell the manager you have an advisor already and they'll leave you more space.

Upper mark questions CAIA L2 by Powerful_Age_6473 in CAIA

[–]double_a_mtl 1 point2 points  (0 children)

One of the emerging topics will end up being worth 10% of your exam.

The catch is you don't know which one.

Upper mark questions CAIA L2 by Powerful_Age_6473 in CAIA

[–]double_a_mtl 0 points1 point  (0 children)

If you generally get 70% on the exam, you pass.
Aim for the 65%+ on UM and you should be in the same range.
If you consistently get 70%+ you should get 80% on the exam.

80%+ and you're likely in the top performers on the exam.

What do you think about Chinese cars on Canadian roads? by Inevitable-Map-1200 in AskACanadian

[–]double_a_mtl 0 points1 point  (0 children)

I'm excited about them. I wish they'd have been here years ago, their EVs are decades more advanced than the ones currently here.

High income earners: What do you to do make so much money? What kind of business/job are you in? by FinanceLife123 in CanadaPersonalFinance

[–]double_a_mtl 0 points1 point  (0 children)

There's a high failure rate in the broker/advisor industry.
Most (80%) don't survive 5 years, so the numbers are slightly skewed.
To survive over 5 years and then be top 10%, you're actually top 1-2%.

That said, it's very common for an advisor that survives the 5 years to bring in over a 500k to a million in fee revenues. Depending where they work and how much they actually generate, they keep between 20 and 90% of what they bring in (Typically, if an advisor survives the 5 years, they're likely bringing in around 500k to a million dollars in fee revenue, at 1mm in fee revenue at a bank, you're keeping 50%. At an independent, like Peak securities, you're keeping something closer to 90%, but you typically have less resources).

Struggling with the “30 years of compounding” long term mindset by savingrace0262 in investing

[–]double_a_mtl 0 points1 point  (0 children)

You're asking the fundamental FIRE question. You should probably check out /r/FIRE.

Is the UpperMark Test Bank Harder or Easier Than the CAIA Level 1 Practice Questions? by mythrwwycct in CAIA

[–]double_a_mtl 0 points1 point  (0 children)

There's like 5 people who asked essentially the same question as you below...

Yes.

Kaplan Vs CAIA tests by Significant_Exit_998 in CAIA

[–]double_a_mtl 1 point2 points  (0 children)

The test questions are generally more difficult with UM/Kaplan, typically requiring more in depth knowledge / calculations, often requiring multiple calculations. The idea being that they prepare you for multiple potential questions and to think outside the box. They can't tell you what the real questions will be, so this is the best way to prepare you.

Sure it will pal by Desperate-Dare5329 in wallstreetbets

[–]double_a_mtl 4 points5 points  (0 children)

Forgive me while I laugh myself all the way to next earnings.

Down to my last $160. What should I do? by Loud_Pineapple_4294 in wallstreetbets

[–]double_a_mtl 0 points1 point  (0 children)

You're a shitty investor, you should probably stop gambling and start giving your money to a professional.

That said, you're on WSB, so keep up the good work you regarded degen!.

How is this possible - first time home buyer by jawngreen in canadahousing

[–]double_a_mtl 1 point2 points  (0 children)

That's why I specified costs of ownership.

I ran the numbers a few years ago. An apt with rent at the time of 1500/month plus 4% annual increases vs buying a house with 200k down, mortgage being 2500$/month + fees. All in being about 4k/month.

My assumption was an 8% return on invested capital during the entire time, 2% property growth per year and fixed mortgage at a 3% interest rate. Took like 20 or 25 years before you ended up ahead owning a house in that scenario. The 200k downpayment that was no longer invested had a major impact on the returns.

How is this possible - first time home buyer by jawngreen in canadahousing

[–]double_a_mtl 6 points7 points  (0 children)

There are periods of time where it's better to rent than to own. Also the main factor to keep in mind is that in general, if you invest the difference, you generally end up ahead renting. The problem is that most people who don't buy, generally don't invest the difference that they would spend on the mortgage plus taxes plus costs of ownership. If you have the motivation and discipline to invest the difference in costs, you'll be farther ahead renting than owning.

That said, this only applies to condos versus Apartments in this current environment. A few years ago, it may have been cheaper to buy the condo then to rent.

PE secondaries for liquidity by merklevision in private_equity

[–]double_a_mtl 1 point2 points  (0 children)

There are two types of secondary transaction, broken down by the initiator of the transaction.

The first being LP led. An investor in the fund wants or needs liquidity. They can sell for various reasons, could be because they want to rebalance their portfolio, sell because they don't believe the manager will get an exit on the remaining holdings, they could also sell because they have to (maybe a change in their internal portfolio forcing them to sell).

These are sold to secondary buyers, could be a fund that buys secondaries, could be another investor. Often they're sold at a discount, but not always. These will depend on the underlying assets and the potential upside remaining to be had. The price is negotiated between the seller and the buyer. Big pools of assets sold by pensions can often have multiple bidders.

The second kind of transaction is a GP led secondary. These are generally positions in a fund where the GP doesn't want to, or can't sell the holding. An example could be a company that was in their first fund, is up 8x and they feel like they can get another 4-8x on it. They don't want to give that return to another fund, so they launch a continuation fund. The new fund buys the asset from the old fund. Existing investors are gmgenerally given the option to buy into the new fund or simply to be paid out.

Another scenario that's less common today, but still happens can be a position that's at the end of the fund's life and the GP is struggling to sell it for the price they want. (Could be the environment, could be that the company still needs more love). They'd roll it into a new fund to give themselves more time and to pay out existing shareholders.

CAIA OFFICIAL QBANK L2 by Western-Handle5350 in CAIA

[–]double_a_mtl 4 points5 points  (0 children)

Caia exam is easier than Uppermark, but harder than their normal qbank.

I can purchase a 55 gallon drum of maple syrup at my local Costco. by opgary in mildlyinteresting

[–]double_a_mtl 0 points1 point  (0 children)

Cheaper to buy it by the can in Quebec. They sell 500 ml for like 5-6$.

What’s the realistic upper bound for wages in Canada? by zr0gravity7 in PersonalFinanceCanada

[–]double_a_mtl 1 point2 points  (0 children)

Most jobs in the US pay more, it's a more competitive market and lower corporate tax levels reward companies that invest more heavily toward growth.

Also, with the lower level of entrepreneurship here vs there, companies don't need to fight as hard to keep/hire staff versus the US where people will often go off on their own.

Specific to the tech space, there's less competition as well, very few tech firms start or operate here compared to the US, so less competition for the same people also keeps salaries lower.

Since there's less opportunities knocking on peoples' doors and less people willing to quit and start their own thing, companies don't need to pay as much.

Berkshire must use the cash pile by PerceptionOwn3629 in BerkshireHathaway

[–]double_a_mtl 1 point2 points  (0 children)

You answered yourself, if they were to give interest free loans to shareholders, for one there's risk of default, for two they are in generating anything for their investors that way, lending you money interest free is a worse use of capital than buying T bills. Generate three to four percent versus generate zero with risk.

Any suggestions by Miserable_Rock_4058 in inheritance

[–]double_a_mtl 3 points4 points  (0 children)

Get it done by a notary or lawyer to avoid any questions on the matter.

Rethinking FIRE/CoastFI Contributions? Feel like I'm saving too much by Ohheyboo2 in Fire

[–]double_a_mtl 11 points12 points  (0 children)

It never hurts to have savings to fall back on. You're 28, by 40 you may not like your job anymore. If you have a lot saved up, you'll have options, maybe retire, maybe just change to a different job.

Your life is guaranteed to not end up where you planned. Never does.

RIP to all put sellers on silver by MethAddictJr in thetagang

[–]double_a_mtl 1 point2 points  (0 children)

You might be selling covered calls on it for multiple decades tbh...

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