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The financial industry is in full mutation. Since the introduction in January 2017 of the requirement to show white leg, to the firms financial are required to clearly present a performance report of your portfolio, and brokerage fees (in dollars) that you spend each year.
We pay for all financial expenses. Yes, on all products. Do not believe, therefore, never those who will attempt to convince you that such ETF, bond or GIC is free of charge.
Your financial institution has nothing to do with Oxfam. When a price is not visible, is that we have simply reduced the yield that they offer you to keep one hand.
It sometimes exceeds half of your winnings.
The average in Canada
A recent study* on the industry of the finance council was that for of portfolios of investments of less than $ 500,000, the cost of advice means were approximately 1.3% of the assets entrusted. This does not include the costs of the products (between 0.10 and 1 %).
In exchange for this compensation, the consulting firms have to offer you many services with high values are noticeable, such as : portfolio rebalancing, retirement projections, analysis of insurance coverage, support to renew the mortgage, the analysis of the costs of children’s education, etc
But also, this affects your personal taxes as the conciliation of interests, dividends, and capital gain, including the establishment of strategy to reduce your tax burden.
It is for this reason that they are called ” consulting fees “. Firms in the better structured you will also provide financial plans and estate and take care of your annual tax returns.
The mutual funds are among the financial products the most popular in the country. They represent an attractive solution for our RRSP contributions and TFSAS.
Usually, in branch, we will provide you with funds whose management fees are commingled with the costs of advice.
The canadian average is approximately 2.35 % of the amount invested ; size of 1.35 % is dedicated to the management and selection of securities and 1 % is reserved for the branch to offer you advice. These fees are in u.s. dollars at the end of the statements of account to the 31st December last.
It is difficult to see that for thousands of dollars collected annually, is sometimes limited to phone you once a year to solicit new deposits into your RRSP. A percent only for this ? It is clearly abusive !
- Please do not hesitate to ask questions about your financial expenses.
- Demand by writing a detailed list of the additional services provided to justify the fees for your advice.
- A comparative analysis of the long-term performance of your portfolio is part of a healthy annual review.
- Over a period of 15 years, households that receive financial advice regular accumulate 3.9-fold more active** that those who are doing it alone.
* PriceMetrix-annual Report-State of wealth management