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In this episode, I’m joined by Cameron Passmore, co-host of The Rational Reminder and a leader at PWL Capital, for a conversation about what financial advice should look like once the portfolio problem has largely been solved.
We talk about why evidence-based investing and low-cost diversified portfolios are only part of the solution, and why the bigger challenge may be building better advisory firms. Cameron shares his perspective on fee transparency, advisor value, firm culture, M&A, private markets, AI, and the future of the advice business.
The central question of the episode is simple: How does financial advice improve with scale?
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Why the advice-business problem is not solved (00:29)
I open the conversation by asking Cameron what the advisor’s job becomes once the portfolio problem is mostly solved.
Cameron explains that in Canada, the advice industry is still heavily dominated by banks and insurance companies, and many investors remain stuck in a product-driven system. While he believes markets largely work, he argues that the planning side of advice is still underserved.
His framework is built around two ideas: markets work and planning matters. A sensible, low-cost, diversified portfolio may sound straightforward, but helping families define goals, make decisions, manage taxes, plan for retirement, and stay disciplined over decades is much harder than it looks.
Fee transparency, advisor value, and the limits of DIY investing (04:28)
We discuss how the U.S. and Canadian advice markets differ, especially around fee transparency and the adoption of low-cost products.
Cameron explains that Canada is moving toward greater disclosure of all-in costs, including product costs that many investors may not fully understand today. He believes that when investors see the true dollar cost of advice and investment products, many will ask harder questions about what they are getting in return.
I push on the idea that the lowest fee is not necessarily the best fee. The fee is the wrapper; the real question is what service, planning, judgment, and behavioral coaching the client receives.
Cameron agrees that some people can successfully do it themselves with low-cost all-in-one ETF portfolios and occasional fee-only planning help. But he also points out that many investors underestimate the difficulty of implementation. As portfolios get larger and life gets more complex, the emotional and technical demands increase.
Why scaled firms can deliver deeper advice (13:47)
We spend a significant part of the conversation on the difference between a solo advisory practice and a scaled advisory firm.
Cameron explains that smaller advisory teams often spend much of their time running the business: managing technology, operations, compliance, client acquisition, and administrative issues. When those advisors join a larger, aligned firm, they can spend more time on the craft of financial planning.
He gives an example from PWL involving complex planning questions for incorporated professionals, such as whether to take salary or dividends or establish an individual pension plan. These decisions are too complicated for simple rules of thumb. PWL has invested in specialized people, research, and tools to analyze those questions more rigorously.
That becomes one of the core points of the episode: a great firm can build intellectual capital, planning tools, and internal expertise that individual advisors often cannot build alone.
Culture, philosophy, and what makes an advisor a fit (21:34)
I ask Cameron what he looks for when evaluating advisor teams or potential acquisitions.
His answer centers on humility and shared philosophy. In his view, one of the biggest problems in the industry is that the advisor is often treated as the star. At PWL, he wants the team, the system, and the belief structure to be the star.
A good fit means believing in evidence-based investing, caring deeply about financial planning, and wanting to be part of a unified team. A bad fit is someone who wants to operate as a stand-alone advisor under a shared brand while keeping a separate philosophy.
We also talk about “franken-firms,” where multiple advisors sit under the same brand but operate with completely different investment beliefs, planning processes, and client experiences.
Private markets, complexity, and the temptation of sophistication (27:26)
I ask Cameron whether the growth of private markets is truly an opportunity for clients or more of a distribution opportunity for asset managers.
Cameron’s view is that most investors do not need private markets. For the typical family trying to save, invest, and fund a good financial future, the priority should be sensible planning, good behavior, diversification, and cost control.
We discuss how private equity, private credit, and other alternatives often appeal to the desire for access and sophistication. I explain that many of the facts used to sell private investments may be true, but not all of them are relevant.
Cameron clarifies that he is not against private equity in all circumstances. His concern is with fees, access, liquidity, and the idea that private markets should be broadly embedded into client portfolios as a core part of an advisor’s value proposition.
AI, better data, and the risk of more noise (35:04)
We turn to AI and whether it will improve advice or simply make financial product distribution more efficient.
Cameron sees two major opportunities. First, AI can help with deterministic, fact-based tasks like coding, compliance workflows, internal tools, and operational improvements. Second, AI can help scaled firms make better use of clean internal data.
He gives the example of using meeting data to identify the most common questions coming from incorporated physicians or other client groups. That could inform future content, advisor training, planning tools, and client service.
I point out that many firms may want to use AI, but they may not have the clean data required to do it well. Cameron agrees that AI will likely make better advisors better, but he also warns that more information can become more noise.
That leads us back to investor behavior. Cameron argues that once investors truly understand that markets work, it can be liberating. They can stop chasing forecasts, predictions, and the next opportunity. But if technology gives people more dashboards, more alerts, and more chances to react, it can also make behavior worse.
Why simple investing is not always easy investing (40:00)
We discuss the difference between a simple answer and easy implementation.
I explain that some investors hear the evidence-based message and assume investing is easy. But the challenge is not just knowing what to do. It is sticking with it through crashes, long periods of underperformance, and years when parts of a diversified portfolio feel wrong.
We also talk about the risks of relying too heavily on the S&P 500. While broad U.S. indexing has worked extremely well in recent years, investors should understand that long stretches of underperformance have happened before. Diversification can feel unnecessary right up until the moment it matters.
Cameron adds that understanding where returns come from should naturally lead investors to diversify across different sources of expected return.
What a great advisory firm might look like in ten years (45:31)
I close by asking Cameron what a great advisory firm could look like a decade from now.
He does not think the answer is necessarily a flashier app or more frequent portfolio updates. In fact, he thinks seeing portfolio information too often may not help clients make better decisions.
Instead, Cameron believes the best firms will have a clear belief system, better service, stronger teams, and the ability to use AI and data to serve more people more effectively.
He also expects continued fee pressure and believes AI will change the advice business more meaningfully than robo-advisors did. But he still sees a major role for human advisors because clients need help interpreting information, making decisions, and maintaining confidence.
I close by noting that with AI, the answer is only as good as the inputs. Good advisors and good advisory teams remain valuable because they know which questions to ask, which information matters, and how to help clients make better decisions.
Resources:
- Cameron Passmore
- The Rational Reminder podcast
- Ben Felix
- PWL Capital
- Plancorp
- Global Association of Independent Advisors (GAIA)
The Long Term Investor audio is edited by the team at The Podcast Consultant
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