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Q. I have a question regarding “financial advisers” offered by banks. As a client, I meet from time to time to review my financial plan but I am essentially a DIY investor. For instance, my tax-free savings account (TFSA) is self-directed via the bank’s online brokerage.

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I am not charged any fee or commission from my bank adviser (that I am aware of) whom I understand to be a salaried bank employee but if she promotes any bank products such as a mutual fund does she receive a commission or bonus?

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How are bank financial advisers compensated? Are they a good choice to help me with my mostly DIY investing? Or should I be considering a different type of adviser to bounce investing ideas off of? —Rachel

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FP Answers: Rachel, I couldn’t help but chuckle when you put the words financial adviser in quotation marks to describe the representative at your local bank. I’ve spent years lamenting inconsistencies and questionable training in the financial services industry. I use the word inconsistencies deliberately, because there are some truly excellent advisers at bank branches, and some who are considerably less able. Proficiency, proactivity, and empathy are all over the map. Most people gravitate toward those who can speak at their level and can solve the problems that they have.

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Regarding your specific point, bank representatives are salaried employees who almost always receive bonuses when clients buy higher margin proprietary products. The conflicts of interest associated with this lack of independence are well known in the industry, which seems unconcerned by them. One of the most obvious limitations of working with a bank representative is that they are often limited in the products they can offer you. Specifically, it’s a lot like the old quote by businessman and Ford Motor Co. founder Henry Ford, who once said you can have any colour car you want as long as it is black. Similarly, a bank employee might say you can have any investment product you like, as long as it’s offered by the institution that has a logo on their business card.

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It’s a bit odd for someone who is a DIY investor to be asking about help because by definition, that converts a DIY investor into an advised investor. If you think you can do it on your own, then feel free to proceed on that basis. Conversely, if you think you need help, you should probably find someone to help you. In other words, my experience is that most people are fairly able in their self-assessment and do a reasonable job of sorting themselves out.

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If you choose to work with someone, you have two primary options. You can work with a fee-only planner, who can assist with financial planning work but who will not make investment recommendations. Or you can work with a licensed registrant who could make investment recommendations (ideally from a variety of product suppliers) and who may or may not have specific expertise regarding planning. Obviously, if you do it on your own you can forgo the cost associated with that advice and if you hire someone it will cost you.

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I’m pessimistic about the Canadian economy. Can U.S. bonds help preserve the capital in my nest egg?

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Q. My concern for my nest egg is maintaining the capital. I’m trying to invest in U.S. bonds. That way, it might mitigate against the Canadian dollar and add some small interest. I’m not optimistic about the Canadian economy going forward. Any suggestions to help achieve this would be welcome. —Don in North Bay, Ont.