So, why do we say we’re “Product Neutral”?

Businessman Follows Carrots Dangling From A Stick

I recall attending a presentation by a senior executive of a major bank a few years ago in which he emphasized that his bank’s strategy was to “sell seven products” to each customer. Getting everyone to borrow was the first step – whether that is a mortgage, loan, or line of credit – because that’s where the bank was the most profitable. Loaning money out to you at a few percentage points more than they paid on savings accounts or GICs. Why 7 products? Because the bank’s research showed that customers who had “bought” seven products were the most loyal. Once you owned that many products or services, they likely had you for life. You were unlikely to move to a competitor even if you weren’t happy simply because of […]

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“I’m in a Defined Benefit Pension Plan, What Should I Do?” — Part 2

Employee Pension Plan

Last month we talked about the precarious position that former employees of Sears Canada are in relative to their pensions — a scenario that none of us would wish upon even our worst enemies. The reality is that there are other Defined Benefit pension plans in Canada in deficit positions. And, this could get worse as the population ages. More so if interest rates stay within an historically low range in the years ahead. So, what should you as an employee be doing? First, learn as much about your employer pension plan as possible. If it’s a private Defined Benefit plan — as opposed to a plan for government employees — where you’re promised a specific monthly income on retirement, determine if it’s fully funded or whether your employer is […]

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