What advice did you actually get?

Mutual fund bashing is all the rage these days and while I don’t agree with all of it, there’s no doubt, the fees you pay for your investments (on average, 2.4% in Canada) create a huge drag on your investment returns. But keep in mind, not all of the money your pay out in mutual fund fees goes to the investment manager, part of those funds go to the financial advisor, to, well, provide advice.

So here’s the question to ask:

What advice did you actually get?

If you currently have a $500,000 invested in mutual funds, you’re paying a total of $12,500 per year in fees, which consists of $7,500 going to the team that manages your money and $5000 to your financial advisor, to, provide you with:

  • Financial Planning

  • Home buying affordability

  • Retirement plans

  • Insurance needs to protect your family

  • Savings targets

  • Debt repayment targets

  • Financial goal setting

And any other household finance situations that may cause anxiety or spousal bickering.

You’ve been paying thousands of dollars per year for advice. EVERY. SINGLE. YEAR. It’s your money.

What advice did you actually get?