Looking for a next step?
Many of the people I work with are shocked to learn the true cost of mutual fund fees in Canada. Between the load fees, any DSC redemption charges and the average MER of 2.25% (highest in the world!), fees can leach hundreds of thousands of dollars from your retirement.
Don’t let this happen to you!
If you want to take control of your financial future, the very first step is to determine the amount of fees you are paying for investment advice. Once this task has been done, you have three options:
STAY WHERE YOU ARE
You are satisfied with the level of service you are receiving for the annual fees paid. You have a high six or seven figure account and you have calculated that you pay between 1% – 1.5% annual fees (outside of your TFSA or RRSP!) for a top level of service that includes estate, insurance and tax planning. Congratulations! …and remember your advisor at Christmas.
WORK WITH A FEE-ONLY PLANNER
You could move from an asset based fee structure (paying a percentage each year based on your account value) to work with a fee-only planner. Depending on your situation, a fee-only planner charges you a one-time fee ($1000 – $5000) to provide you with a comprehensive financial plan for moving forward. This plan can encompass everything from investment advice, asset allocation, tax, insurance and estate planning. If your account size does not qualify you to see a top investment advisor (often a minimum of $250,000), you can’t go wrong with a fee-only planner. The fabulous MoneySense magazine maintains a directory at http://bit.ly/1I1Ko8u.
BECOME A DIY INVESTOR
Last, but certainly not least, you could learn to invest on your own. Without a bank or an advisor. The basics of investing are not complicated and taking the time to understand them can add over half a million dollars to your retirement. Would $500,000 make a difference to your future? While I absolutely support working with a great advisor, I also believe that every Canadian should understand the basics of investing and the true cost of investing fees. If you would like to get started, you won’t go wrong with my free 30-day training, Investing Bootcamp.
Click here, or fill out the below form to sign up anytime.
That’s it for today! Any questions, feel free to visit Ask Nanci.