“The Misguided Beliefs of Financial Advisors”, a recently released study of two “anonymous” Canadian mutual fund dealers (over 4000 advisors, half a million clients) finds Canadian advisors recommend investments that underperform the market by 3% annually. No news here. The shocking revelation (to me at least) is that advisors personally invest the same way and […]
It is easy to see why Canadians are increasingly investing through Exchange Traded Funds (“ETFs”). In fact, Canadian ETF sales were up over 50% in 2017 bringing total outstandings to almost $150 billion. But why do millions of Canadian investors continue to stick with expensive mutual funds? Because they rely on advisors who are paid […]
You can buy mutual funds through your local bank branch, broker, insurance agent, advisor, etc. Exchange Traded Funds (ETFs) are easily accessible through online discount brokers. Both mutual funds and ETFs hold stocks or bonds on behalf of investors, but ETFs usually cost a lot less and can leave much more money in your pocket. […]
Would you sign a contract to buy a new car or a new home without knowing the price? Of course not. Before committing to a major purchase, you want to be sure the cost is reasonable. Buying investment products should be no different. You deserve to know the costs. But there are two problems. First, […]
A typical Canadian investor holds a fund which produces a 6% total average annual return for 30 years. Q: What’s The Fee? A: 2.00% B: 33.3% C: 53% D: All of the above The answer is D: All of the above If you own a fund which generates a total average annual return of 6% […]
T-Rex Score of 28%?? WTF?! (Just to be clear, WTF? stands for What’s The Fee?) Short term changes in the value of bond mutual funds and ETFs are driven by day to day interest rate moves. But for long term bond fund investors, short term changes in market values don’t mean much. Two factors really […]
With almost $23 billion in assets, RBC Select Conservative Portfolio is one of Canada’s largest mutual funds. To project how much of this fund’s total investment return you will keep and how much will be lost in fees, go to wealthgame.ca. In the example below with annual fees of 1.84%, your T-Rex Score is 49%. […]
RBC, Investors Group, Fidelity, TD, Manulife, etc. T-Rex Scores reveal how much of your investment return you actually get to keep and how much you lose in fees. What’s your Score? Each of us can determine our own T-Rex Score using simple assumptions that best match our circumstances. But for purposes of making comparisons across different types of […]
Subscribe via email T-Rex Scores are the best predictor of a fund’s relative performance! T-Rex Scores aren’t the only factor to consider when choosing investments. But if you are a long term investor, your T-Rex Score can make the difference between: -living the lifestyle you seek versus just getting by; -living in your home longer or being […]
Subscribe via email Three Little Pigs: The Children’s Version I remember acting out the Three Little Pigs fairy tale when I was a little kid. My dad played the wolf and my sisters and I played the pigs. We all had fun. The story goes something like this: Three little pigs set off in the […]
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