By the clock

This post is not about the war. Relax.

Having said that, it’s not going well. It can’t. There is no positive outcome to the beast Trump has unleashed. Oil may be $100 this week as supplies fall and demand doesn’t. Energy infrastructure is being bombed into rubble. Tankers burned. Refineries destroyed. Supply chains upended.

But this post is not about that.

Nonetheless, an oil crisis usually turns into an everything crisis. If the mess in the Middle East continues (and how can it not, after this escalation?) inflation will spike, families suffer, real estate be hobbled and interest rates rise. Gas is up 10% in a week. Just wait to see what this does to groceries. And we’re nowhere near the conflict zone. By the way, the war is in Lebanon now, too, where half a million people have been displaced and another million are refugees.

But while this is not about war, the war will touch us all. Including Tony.

“I have been reading your blog daily for over 10 years now and it’s finally time for me to reach out and ask for a favor,” he says. “I’m thankful for all the free advice over the years and great dog pics.”

Now that the wheels seem to be coming off – at least in Washington – Tony is reaching out to me for assistance in finding financial help. The wrong way.

“I have been a DIY investor all the years, but I think it’s time for me to get some professional advice and I’m looking for a referral for a fee only financial planner,” he adds. “I’m comfortable executing a plan but I have my own company plus personal investments and I think I’d benefit from some advice, to ensure that I’m structured appropriately. It would be great if you are able to help with a referral.”

Sorry, Tony. Not gonna happen. Here’s why. Especially now.

A fee-only advisor (sometimes called advice-only, or fee-for-service) is like a psychiatrist, lawyer (or hooker) and is paid by the clock to provide services. The cost is usually a few hundred dollars an hour to meet, assess your needs and give advice on how to invest. That could lead to a full financial plan, costing about five grand.

The advantage is getting what you pay for without judgment or entanglement (like the hooker). No hidden fees or (unless you pay for them) repeat visits. It’s transparent and unbiased.

The disadvantage is you’re left holding a plan in your hand, instead of having a hand to hold. Once a personal plan and model portfolio is designed, you must execute it. That involves a trading account, buy orders, commissions and time.

Then the hard part. Opening the right registered and non-reg accounts, ensuring contributions are made for max tax efficiency, keeping your emotions in check when, say, a rogue world leader starts a suicidal regional war, routine rebalancing and having the courage and discipline to take profits from winning assets and acquire those in decline. You need to ride out shocks, like oil going nuts, abrupt changes in interest rates or wild market fluctuations.

And what if you lose your job? Get divorced (or married)? Have twins? Buy a Harley? Receive an inheritance? Retire early? Get swindled through an online dating app? Or can’t sell your house?

Life’s full of surprises. A plan or portfolio written for one moment in time cannot stay static when the world (and you) keep moving.

In my experience, Tony, people use a one-time advisor (or a robot) because they haven’t learned to trust someone, or they’re cheap. Both are valid reasons. Both keep you constrained.

In contrast, a fee-based advisor takes control of a portfolio, manages it, rebalances and adapts it, opens and maintains the correct accounts as well as creating and executing a lifetime financial plan. You have to trust, delegate and partner with that person. In exchange, you surrender stress and doubt.

But it costs. Plan on about 1% of the assets under management per year. With non-registered (and business) accounts the fee is 100% tax-deductible. The charge is typically paid on a monthly basis, and out of investment returns. In addition, there are fees for the ETFs held in the portfolio, but these days those are puny and declining. Figure on about one-quarter of one per cent.

As you likely realize, Turner Investments (named after a famously pathetic blogger) is a fee-based advisory, looking after folks across then nation. Mea culpa. Conflict of interest. I fess up.

But there’s a reason it isn’t a by-the-hour service. That doesn’t give joy. At least not with finances.

About the picture: “Loyal reader for years grateful for the consistent straight talk,” writes Laura. “Sticking to your advice over the years and living well below our means has meant stuffed investment accounts and no stress despite a chronic illness that meant I couldn’t work any more at 40. Answering the call for more doggos, here is our foster dog Bebe. She’s silly, affectionate and crazy smart. She’s available for adoption here in Calgary. https://pawsitivematch.org/dogs/bebe/ .We’ve had dogs for 20 years but aren’t sure where life will take us in the not so distant future. Fostering is a great way to get the dog cuddles without the cost and commitment. There are so many good boys and girls who need a chance and the rescue orgs typically cover all expenses including food. And the satisfaction of seeing their progress is like nothing else.”

To be in touch or send a picture of your beast, email to ‘garth@garth.ca’.

Source: https://www.greaterfool.ca/2026/03/08/by-the-clock/