Holes in report damning high mutual fund fees

Holes in report damning high mutual fund fees

  • Kathy Waite Your Net Worth Manager 2015-02-26 12:26:58 PM
    I think the point Rob Engen, myself, Sandi Martin, Larry Elford, FAIR, Jonathan Chevreau, David Chilton, Preet Bannerjee ( and if you don't know who these people are you need to get out once in a while and not just drink your mutual fund dealers Kool aid) is that all businesses need to make a profit or they will not be there to look after clients long term. The issue is transparency , what am I paying and for what ? Then a variety of choices for people ETFS, mutual funds, active or indexing.
    People are their own worst enemy spend more time planning a vacation that their retirement.
    Its interesting I always get a slew of new clients in bad markets. In the good the apathy prevails.
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  • Gerald Curtis 2015-02-26 12:49:42 PM
    It never ceases to amaze me how data can be so skewed by people with an agenda. The CCPA objective of every Canadian having access to money management at less than half a percent of assets is just totally unrealistic.
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  • Bob T 2015-02-26 12:51:08 PM
    Apples to Apples comparisons are virtually impossible here but it seems that one of the real risks to retirement savings is really ignored in this report.

    What about the investor who buys his RSP at his bank and invests solely in GIC's because they are "safe". Recent GIC rates are around 2%. How long would you have to work at that rate to retire with the same numbers as the "pension fund" shown in the report.

    Advisors can only work with what is available. If fees are the major predictor of performance wouldn't you, therefor, be better off with GIC's and no fees.

    A good advisor can guide a client through the choices available. A good advisor "not a captive advisor" could point out to a client that Investors Group has the highest fees. A good advisor can point out the risks on the downside of investing solely in ETF's and tailor a portfolio of investments which meet a clients risk profile.

    A good advisor controls
    1. risk
    2. costs
    3. suitability
    4. diversification

    A good advisor informs clients that nobody is smart enough to predict where markets are going to go in the future but structures a prudent approach to investing.

    A good advisor needs to be paid for providing that advice but does so without hiding that compensation. Banning trailer fees for me would be a good approach but make sure that the press also advises people that they need to be prepared to pay a reasonable amount to an advisor.
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