You might feel a touch of anger after reading this series of articles.
I’m about to show you how much money the average Canadian is paying the big five banks, when trusting the banks to invest their hard-earned investment dollars. Think of it this way: If you were to build a $100,000 investment portfolio over your lifetime with actively managed mutual funds from CIBC, TD, Bank of Montreal, Scotia bank, or the Royal Bank, you would likely be giving up half of your portfolio’s potential. Surely, $200,000 sounds a lot better than $100,000, doesn’t it?
This series of articles will point out where the average Canadian is wasting their money, and in my final column of seven, I’ll explain, very specifically, what you can do about it.
I haven’t committed to this series of articles to make you angry. Instead, I’m hoping that you’ll be empowered. You see, as an investor, you’re in a battle with your investment firm. They have a prime directive that’s different to yours. Financial service companies have a goal to make money for their firm, and you have a goal to make money for yourself.
Think about this for a moment: You can’t blame the banks for wanting to make high profits. That’s what they’re in business to do. If you’ve ever haggled on mortgage interest rates, then you know what I’m talking about. The banks will usually offer a high interest rate, and it’s up to you to barter downward.
Low cost investment products, as a group, outperform high cost investment products.
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