Weekend Reading – Will AI Replace Financial Advisors?
Welcome to a new Weekend Reading edition about AI, replacing financial advisors. A take on that in a bit.
Here are some recent posts in case you missed them:
During my vacation in Belize, I wondered what the best asset allocation is entering retirement.
I just posted our latest montly dividend income update – a projected income forecast for the year.
Weekend Reading – Will AI Replace Financial Advisors?
Headlining this Weekend Reading theme is this post from Ben Carlson: Will AI Replace Financial Advisors?
To a point – would be my answer.
Like Ben, including what I wrote about just a few months ago on the rise of FinFluencers, AI is going to provide more financial planning tools to the personal finance toolbox.
This is a win.
DIY investors who are keen to learn how to save, invest and mind their taxes over time, may or may not use a financial planner let alone a fee-only planner anyhow. They would much prefer to improve on their own using lower-cost self-directed solutions and arguably on their own terms without the biases to grow a client base or assets under management charging 0.5%-1% (or more).
There is also a win for the wealth manager or wealth management firm in that they can automate more tools for their wealthy clients.
As Ben wrote: “There doesn’t necessarily have to a zero-sum game with winners and losers.”
Back to the subject of Finfluencers for a moment, in my letter to OSC (Ontario Securities Commission) staff notice related to guidance on how securities laws apply to the activities of social media financial influencers (finfluencers) and to registrants and issuers who work with them – I can share my thoughts on AI and this subject in the following way.
(A letter that I took time to write but never got a reply or even a simple acknowledgement, unfortunately.)
Here is part of that letter from December 2025:
“In many cases, finfluencers offer a form of accessibility, trend-sharing, general information and in some cases when the individual is diligent, valuable financial education that traditional channels have simply failed to provide.
Some finfluencers have achieved financial independence themselves, at an earlier age than most, offering proof that self-directed investing in Canada can be very successful when approached thoughtfully.
While some finfluencers are democratizing access to financial information—sharing information and progress in this regard comes with trade-offs and risks to safeguard against. This can be especially true when a few ‘bad apples’ may ruin the progress of a well-intentioned bunch.
Investors must be encouraged to think critically, cross-reference any notion of advice with reputable sources, and, when necessary, consult credentialed professionals for tailored, personalized decision-making.
In my opinion, the key is not to avoid finfluencer content entirely, but to consume it as part of a broader, more holistic financial education strategy while maintaining appropriate skepticism about sources, motivations, and the limitations of accessing information from anywhere, anytime in our modern age.
Ultimately, Canadian investors will be far better served where there is a broader menu of tools and solutions that vary in scale and cost for everyone without the reliance of just a professional community of folks that may or may not put client needs first – rather, they focus on the business they operate in or the business mandates they serve.”
I welcome your thoughts on AI, FinFluencers and again, anything else on this site. I read everything. 🙂
Weekend Reading – Beyond Will AI Replace Financial Advisors?
How much do you have in your TFSA?
CRA says you’re in the top percentile if you have more than $200,000 in your account.
Thanks to @Dividend_Dog for this. Source: https://x.com/Dividend_Dog/status/2033024884209586302
Is tipping culture out of whack? Might be.
The default option for a recent dinner I went out for was starting at 20%.
From the article:
“Lingering frustration among those polled is increasingly shaping consumer behaviour:
89 per cent resent businesses that prompt for tips they feel are unwarranted.
41 per cent actively avoid businesses known for aggressive tip prompts.
79 per cent enter their own tip amount rather than selecting a suggested percentage.
89 per cent believe tip percentages have become too high.”
And finally, since I’m getting excited for golf season – here is a great swing tip/drill.
I hit balls from time to time by keeping a golf glove tucked under my left armpit like Grand Slam Winner Rory McIlory does above.
Why?
It helps keep my arms, specifically my left arm “connected” to my body.
I have used this drill over the years with 7-irons at the range with about 30-40 balls. I swing at about 50-75%. I figure if this drill is good enough for Rory McIlroy then it’s good enough for me…!
Have a great weekend avoiding high tips (!), or working on your golf swing, and I look forward to your comments.
Mark
Hi Mark: Like my dad said now my portfolio was my business so I just kept adding to it and hunting the stock page for new blue chip companies. Like I said and found to be true if you stop the world will pass you by. A little history. On 17 Jan./’92 I had $400560.00 and the second week of Sept./’97 I crossed the 1M mark. The decade of the ’90’s were like last year. The only off year was 1994 were my net worth only went up by $3443.00 but I still lived. At one point this year I was worth $9.3 M but the market has pulled back a bit so now $8.9M- $9M. They say the market gave back all it’s gains for the year but if it rose 8-9000 it’s still high and most are too high to buy. As far as Telus some people say that they don’t need to drop the dividend, that they have enough to cover it so if so this would be a good time to buy it. The price only matters when the price is low otherwise it doesn’t matter as it is the cash flow which matters the most and I’m considering another buy of Telus. Mark once I did list some stocks I have and the amounts. When I first started out in ’69-’70 I couldn’t buy a board lot so I would buy 25 shares. Soon I had more money so I could buy 50 shares and later 100 shares. Now I buy in thousands except in the TFSA which is smaller so I can only buy in 200 -500 range. It all depends on what you have in cash. Mark, a thought on BCE and Telus. Ten years ago all the hype at the time was on 5G. It would change the world. Your fridge would be talking to your stove etc. but now has that turned out for BCE and Telus as analysts have found tons of debt on their books. Now all the hype is AI so in another 10 years will analysts look at the books of the Mag 7 and discover that they have a ton of debt on their books and knock their share price down. Yes I know. Believe me after 56 years in the market its never different this time. One last thought Mark; if you live within your means you too will make money in retirement, just ask Henry.
Ronald, very nice journey. Wow.
Very well done: “….now $8.9M- $9M.” A level of net worth most will never get to, of course.
I don’t share my net worth at all on this site but I can say we’re doing OK and ready to retire in our early 50s – we’re going to give it a try!
It is our hope that our TFSAs combined will double in value and be worth $1M within another 10 years in our early 60s. That would be a nice milestone for us.
We hope to reach $90k in annual dividend income within a year from now. We shall see if we get there?! More dividend raises from Canadian banks, utilities and pipeline stocks will help of course. 🙂
Mark
Hi Mark: May I get something off my chest Mark. It’s not how much you spend in retirement its how much you save, spending happens. With your projections Mark you will find if you live within your means you will have more money to spend if so every year hence. As far as the market I would probably be worth $20M- $25M if all stocks were in Tech and it would come with one perk. Not only would I get the OAS I would also receive it. How irrelevant are dividends well when the bills arrive at the first of every month I find the dividends very relevant. Mark I have about $270k in the TFSA. After leaving the workforce over 34 years ago maximizing my portfolio is my hobby and business. Someone once said when do you stop because you have enough and I said you never have enough. That is one of the lessons I have learned. When you stop you will be passed by. Consider that when I got laid off and was worth $400k if I had stopped investing what shape would I be in today. Anyways I like it too much. I like the stories, history and even the frustrations and it helps to keep the mind sharp. The history leads you to question reporters facts. One articles by Andrew Willis said that Telus had come a long way from a provincial telephone company. This was news to me because Telus as it is today came from British Columbia Telephone ran in the ’70’s as a public company half owned by GTE. They merged with Telus later on and if you looked at the board of directors you would come to understand that it was actually a takeover. Maybe Telus was a provincial telephone company but not the Telus as of today. Like I say I like following the companies and keeping track of their past and were they are headed.
I hear ya, Ronald….dividends are rather relevant to me too – I will be living off them very soon.
It’s hard to wrap my head around, but if laid off 30+ years ago and now your portfolio is measured in millions from $400k that’s amazing. Incredible.
I know you own lots of ENB and BAM/BN – not sure you ever shared the rest of the portfolio?
I think Telus is going to have to cut their dividend in 2026. Been saying this since this time last year.
Cheers,
Mark
Hello Mark,
I don’t mind paying a tip but when I’m getting a good service that justify that tip not when I’m going to Tim hortons for example and some one give me a cup of coffee.
As for the TFSA we both have ours a bit above 200k and we’ll keep maxing those on Jan 1st of each year, it’s the jewel of our system and everyone should participate in it.
I just started reading this book from Morgan Housel “The Psychology of Money” and it’s well written that I almost can’t stop reading it 🙂
Well done, Gus.
I love the TFSA too!
Yes, that book is excellent. I have my favourite takeaways of that book posted on my site.
Mark
When it comes to AI, I govern myself upon the sage advice of “A man’s got to know his limitations.”. Don’t know anything about using it, and too old to figure it out now.
If that TFSA data is from CRA then it ain’t likely current. IIRC, CRA is usually a couple of years behind in releasing this kind of data.
As to tipping….I don’t experience it enough to get too worked up over it. When I go out for breakfast I leave a good tip for good service and I always get good service.
I don’t golf. Why spoil a good walk. 😉
Very fair…re: CRA a few years behind.
This wouldn’t be current data/2026 data.
According to data a few years ago:
https://www.theglobeandmail.com/investing/markets/stocks/CLS-T/pressreleases/216650/the-average-tfsa-balance-for-canadians-at-50/
According to Statistics Canada’s 2023 contribution data, the average Tax-Free Savings Account (TFSA) balance for Canadians aged 50 to 54 sits at roughly $30,200. Notably, the average unused contribution room for this age group is nearly $58,000.
And…
https://www150.statcan.gc.ca/n1/daily-quotidien/250401/dq250401a-eng.htm
I recall from TD bank, a survey, from October 2025, they found that 39% of Canadians who have a TFSA are not investing any money in it. One core reason for it is to have funds readily available. 🙂
People are just not able to save these days.
LOL on golf. 🙂
Mark
So 2023 data then. Neither of our TFSAs were $200K back then. But that Motley Fool article shows how out of touch with reality I have become. I am actually astounded at how low those average values are. I would have bet a large double/double and a large box of Bits that there was a lot more in TFSAs than that.
Well, I found a 2026 reference but I don’t know the source.
“The average Canadian TFSA balance at age 45 is estimated to be slightly over $20,000. That’s the not-so-good news. This represents an $89,000 shortfall compared to this group’s cumulative TFSA 2026 contribution limit of $109,000.”
https://money.tmx.com/quote/BB:AQN/news/8599744346729882/Heres_the_Average_Canadian_TFSA_at_Age_45
Again, I think having anything over $200k in a TFSA is rare, comparatively speaking. Likely in the top 1% for sure in Canada.
“estimated” and at age 45. I suppose that might be somewhat useful information to those of that age but even then a large grain of salt ought to be applied.
Given the amazing market growth of ’24 and ’25 these numbers will obviously be higher, but ya, these numbers still surprise me. As I said, I’m obviously currently out of touch with real world personal financial matters. 🙁
I think maybe not going to work has clouded my vision as to how difficult it really is out there now.
Well, you have been retired for a few fine years! Kudos.
I’m very surprised only 0.2% of those with a TFSA have more than $200k of value in their account. I am in that category, albiet not by much, simply by contributing the max each year and earning average or perhaps slightly above average Canadian market returns. I’m gobsmacked such an approach appears to be such an outlier!
Yes, so was I, Paul!
All good. I simply believe some folks cannot save that much these days.
My guess is our TFSAs might double in value every 10 years or so…and if they do, they could be worth $1M combined then. We will see!
Stay boring and stay invested – I’m sure you will. 🙂
Mark
I’ve got $320k in my TFSA (37 yrs old, still have 46k contribution room). I’ve been a shareholder of Nvidia since january 2016, and made a few low risk bets when market conditions present themselves (buying TQQQ and tech stocks in fall 2022, long dated call options on RioCan in april 2020, CNQ in may 2020, etc). Since I sell long covered calls on my Nvidia, my maximum gains right now are capped at $134 per share until december 2026 (‘Ive been rolling them for a few years). After November’s earnings report and the Theta decay, I’ll roll these calls until december 2027, moving my strike price to about $160-165 (basically a one year long call moves the strike price by about 20% higher, not bad for doing nothing and waiting).
That is excellent, Dom. Well done. Some good bets and not surprised you have over $300k in your TFSA. I know some others that have the same.
Our TFSA has been brought down YTD by ETF XAW but will likely buy more in there anyhow this month with cash building up.
How long have you been doing covered calls on stocks?
Cheers,
Mark
I’ve only done covered calls on my Nvidia position for 5 years now. Usually these were 20% higher strike price with a 2-3 weeks duration so that the time that passed had a huge effect on the contract price (theta decay). I used the money to diversify away.
Good stuff. I’ve never done any covered calls and don’t intend to but I can see the appeal.
More of a buy and hold and buy some more guy!
I agree Mark, I find Ai a good tool in ones mix for discerning over certain stocks in the same category instead of relying on one or more specific annual paid subscriptions to platforms that give stocks a safety, value, charted, etc. rating.
One only needs one paid platform subscription, plus an app that provides financial current and past history detailed info. and Ai in order to determine their decision making on their portfolio. Yet, given all that, there’s no guarantee you’ll be 100% correct because there are always unknown and uncontrollable variables that pop up when owing a stock. Nothing is 100%.
Coming from a moderate user, imo it depends on what form of AI is used there are big variations between the various generic and trained models. The better models are not free so you will pay for advise regardless. To make AI useful it requires “training” to ask the right questions and quite a bit of rigor to verify results. I feel this would benefit the more savvy/professional investors most.
How much advise does one need for generic investment solutions anyways? AI would be able to provide much of the basics today. The role of advisors in more complex cases (Corporations, Trusts, residency, taxation) will be harder to displace with AI but for better or worse AI will quickly replace more than the just Google it approach, as it does it will become better and better so it’s only a matter of time.
Then there are considerations wrt certification, liability and trust. AI necessarily won’t have these I imagine so critical thinking still required:)
The challenge with AI and some financial advice now is – bad inputs, bad outputs.
So, I believe there will always be a need for human<>human intervention and discussions.
There are a growing number of free tools and applications that can really help the DIY investor. There are also many lower-cost solutions coming online too. This is excellent overall.
Thanks for your thoughtful comment.
Mark
Having moved to Europe 10 years ago I have grown to love the no tipping culture (in most Europe countries) and guess what, the service does not suffer. Waiters are paid a living wage. Whenever I come back to Canada to visit, I am reminded that I need to add the tax and the tip to the price I see on the menu… not fun.
Yes, agreed. See that all the time when I travel too. If pay folks a good living wage and treat those employees well, tipping in the service industry is not an expectation.
On the subject of AI replacing financial advisors.
SIL is/was financial analyst who got let go. He told me that AI could do at least 75% of what he was tasked with analyzing.
Another person I know who is fairly high up the totem pole with software sales says he uses AI all the time. He also says he doesn’t trust anything it says until it is double checked. Good for initial work but after that humans take over.
Don’t know if GPS systmes have improved any but they could at times lead you on a merry goos chase over roads that did not exist. GPS is a very basic form of AI. It analysis’ where you are, where you want to go and spits out how to get there. If it takes you through a farmers field that is your problem for following it.
The few times I have asked AI to lay out a route for me it has been completely useless.
Summary – yes, use it but also use your head
RICARDO
I think AI will many great things, if used wisely.
There is a saying: a fool with a tool is still a fool.
So, yes, use your head as much as possible.
Have a great weekend,
Mark