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Whenever I purchase mutual funds with a financial adviser they always suggest I put it into an RRSP account. Even if I tell them that I plan to take the money out after a couple years to make a big purchase, they still insist that the tax refunds and tax deferred growth during the 2 years will likely be worth it, which I disagree with. This happens to me at both TD and CIBC. Do bank representatives receive more commission/benefits if their clients purchase investments in registered accounts as opposed to regular accounts?

While we're on the subject, I've also noticed that they strongly advocate the following services below. Can anyone verify if any of these offers give them commission incentives as well.

-Pre-Authorized monthly deposit (eg: automatic $200/month from checking acct to existing mutual funds)
-Optional Insurance (on anything)
-Put money in a TFSA account
-Opening a new credit card
-Opening a new cheq or sav act
-Anything else you may know of
 

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Do bank representatives receive more commission/benefits if their clients purchase investments in registered accounts as opposed to regular accounts?

Everything they do and say is done to make more money for the bank and likely the representative you are talking to. Why would you think otherwise?
 

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It might be worth it to put a little in an RSP as a hedge against log term job loss. You can deregister some of it in a really bad income year. But keep in mind that you must address retirement savings sometime. I am in good shape now because of choices I made 25 years ago.

Really the ideal vehicle to exploit would be a TFSA - max it.

Deferring taxes for two years in a scenario of stable or increasing employment income makes no sense to me.
 

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As far as I am aware bank reps work on salary, not commissions. But they are interested in selling you financial products that make the bank money. It is possible there are some hidden benefits in their performance appraisals, but not financial incentives per se.
 

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Bank reps work on salary BUT they have performance targets they must meet in order to advance in their jobs, and sometimes just to keep their jobs.
 

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From all the threads I've seen saying "My bank FA told me" [insert nonsense here]

I wouldn't trust a word they say
 

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I've noticed this too. For the past few years, the bank is always trying to up sell me on insurance, credit cards, TFSA, anything they offer, even their cheqing accounts. I don't even mention it, they do.

Long time ago, I used to work in a pizza joint and the manager always said to "up sell" every customer to buy more food/drinks. Even if they don't ask for it. Eventually someone will say "sure, why not, load me up with drinks and cheesy bread." Extra $5-10 they weren't going to spend.

I could imagine this is the case for all that insurance stuff they sell..
 
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