Are You a Do-It-Yourself-er?Christopher Briggs, RRC®, Wealth Advisor, Managing Director
If you consider yourself a “do-it-yourself-er,” and you like to use mutual funds, you are most likely paying higher fees than you should be.
Most mutual funds that are used in discount brokerages are set up to pay approximately a 1% annual servicing commission to an advisor. If there is no advice being provided or an advisor attached to the account, why would you pay an extra 1% annually for nothing? The disturbing part relates to the number of no commission options that could be offered or suggested on these platforms, but were not.
Major financial institutions have known this for years but haven’t made changes to the structure. Now it could cost them dearly as numerous lawsuits are being filed or have recently been settled. The answer? Be informed when you’re investing and never default to the expedient choice.
There are over 16,000 mutual funds available in the Canadian investment landscape. How are you choosing yours, and how do they match up to the best in the industry? Many advisors are only able to choose from a limited proprietary product shelf vastly limiting your options.
Most financial institutions have been the easy choice for many investors, but we recommend interviewing a few independent wealth management firms, like ours, to really understand the depth of the market and the breadth of your options.