www.insideHALTON.com | OAKVILLE BEAVER | Thursday, April 7, 2016 | 18 A Alleged bad advice costs couple close to $50K lleged bad advice from a nancial planner at a Canadian bank may have cost a retired couple almost $50,000. The alleged facts were recently reported in the national news and the story offers two lessons. One for bank and one for investor. A couple reportedly wanted to move approximately $200,000 from an American savings account to their Canadian RRSP and two competing banks had recommended against the transfer indicating it would require paying signi cant taxes in both the U.S. and Canada. Another Canadian bank's nancial planner, however, reportedly recommended the transfer be completed, indicating it was possible -- but, there would be a 20 per cent withholding tax. At this point in the story, the nancial logic becomes weak. In our opinion, both bank and investor were at fault. Apparently, the clients questioned the advice that was contrary to that of other banks. Dollars & Sense Peter Watson Guest Contributor Financial transactions have serious rami cations for both nancial institutions and its clients. Both should be on guard to ensure each is assuming their responsibility to understand what they're doing. Guest contributor Peter Watson The couple reportedly had been told the bank was such a large organization, it could do things others could not. That was ridiculous. Shame on any nancial planner for saying such a thing and shame on any investor believing such a statement. After the transaction, the investor reportedly received large tax bills from both countries and some old-age security pensions were clawed back. The couple apparently lost close to $50,000. To say they were angry is an understatement and they pursued this with the bank that recommended the transfer. An institution they had dealt with for 30 years. At the end of last year, the bank reportedly offered them almost $19,000 as an appropriate level of service had not been provided. The couple did not nd this fair and went to the media. The bank apparently increased its offer -- $50,000. The actual loss to the retirees was $47,000. The signi cance of this story is it provides the opportunity to learn from mistakes. It could have been a case of a bank staffer being untrained or unsupervised or perhaps both. It could have been a case of a bank nancial planner wanting to sell an investment and earn a commission not disclosed to the client. The bank was slow to adequately respond to the complaint. The bank gets a failing grade as does the client, who'd apparently had advice from two banks not to proceed. There is a responsibility of buyer beware and a red ag should have gone up. In hindsight, the client could have done a better job protecting its interests. Financial transactions have serious ramications for both nancial institutions and its clients. Both should be on guard to ensure each is assuming their responsibility to understand what they are doing. -- Submitted by Peter Watson, MBA, CFP , R.F .P ., CIM, FCSI., Certi ed Financial Planner Since 1967 Follow Oakville Beaver staff on Twitter: @OakvilleBeaver, @NewsHooked, @DavidLea6, @JuliaLeReporter, @HerbGarbutt, @PostBeaverSport and @Halton_Photog upholstery & design Custom made or reupholstered to suit your style! O Thursdays 1:00 6:30 pm P E Saturdays 10:30 am 1:30 pm N Sundays 10:00 am 12:00 pm We can make it! Sofas · Chairs · Headboards · Throw Pillows · Drapery & Hardware 11-2345 Wyecroft Rd, Oakville · 905.616.3156 · www.baiers.ca Homemade Ukrainian Food terrace take-away all prepared and easy to warm up 905.337.1400 ext. 116 orders@terracetakeaway.ca cafe@sjucc.ca www.terracetakeaway.ca 2376 Parkhaven Blvd, Oakville 2376 Parkhaven Blvd, Oakville · 905-257-5880 905-257-5880 maximekitchens.ca maximekitchens.ca St. Joseph's Ukrainian Catholic Church 300 River Oaks Blvd. East (at Trafalgar) Oakville ON