You’d be ‘stashing 15% of your income before it even touched your bank account (automatic! Chicanery But there is some chicanery here and you need to know about it. Not quite “The Dabo table at Quark’s Bar” rigged, but so damn close you’d swear there’s a Ferengi hiding around a corner somewhere. When I first set up an account and chose my funds, I paid no attention at all to the MER. Once I found out, however, you can imagine my rage. Each of those funds has, in its definition, the words “S&P/TSX Capped Composite Index ” or something to a similar effect.I examined the funds offered by the investing arms of the five major Canadian national banks.
But enough of the rehash, the real question is: What To Buy Once You Have the Account That’s not too hard a question, right?
We all know that stock or bond index funds are the way to go unless you think you’re smarter than the stock market () Novice Investment When I started the investment game, I had no idea what I was doing. My father, a wise man who taught me to fear debt and spend only money that I had, instructed me to max out whatever pension contributions my company would give. Money Mustache and I worked for a Canadian company that kicked in 50 cents on the dollar up to 5% of our salaries. Intermediate Investment So I did you some research and here’s what I came up with from the national banks in Canada.
Although it took him a while, I feel the result is very worthwhile.
After the success of his first article, people began requesting this second one almost immediately.
A bit of We’re looking at 0.12% to 0.15% for basic index funds. We’re looking at getting the retirement fund down from that ridiculous .14M number to somewhere in the neighbourhood of 5k.
The downside to the ETF is, of course, that you need to purchase it through a brokerage, presumably at the bank where you have your direct investment RRSP or TFSA account.
You’re well ahead of the rest of the fools who are subscribing to any of the funds in that chart up there, and at least three wormhole jumps ahead of the idiots back in the Delta Quadrant who are taking payday loans to finance video game consoles.
But this isn’t the blog for just stopping at good enough.
The benefit of an ETF is an even lower expense ratio.
Now that you can buy Vanguard funds here in Canada, there is no excuse for getting ripped off with excessive fees: See their rates here : https:// Note: Another benefit of looking at Vanguard ETFs is easy diversification.
I’ve now got my retirement requirement down to 2k.