By Gary McGowan
Have you ever wanted to know the secrets behind the mutual fund arena?
Did you know that 75% of funds perform below the index?
Do you have faith in the financial advisors from your bank?
Do you feel you’re not getting the advice you are paying for?
Do you want to take ownership of your RRSP?
Did you know that every mutual fund has a Management Expense Fee/Ratio (MER) that ranges from 1% to 5%? YOU PAY THAT NO MATTER WHAT. You need to know what the MER is for each fund that you invested in, it can dramatically change your returns. Ask your financial advisor how much they earned from your investments last year. You will be surprised…
The average fund was a NEGATIVE 20% in 2008 and then you need to deduct the MER. On average mutual funds where actually down 23%.
Did you know that there may be better funds in the market other than what your advisor is selling? However you will never learn about other funds because your advisor is not receiving a commission for selling it.
When an advisor is asking you where do want to invest? How much? How frequent? The first thing you should do is ask to see their portfolio. Never invest with someone without asking “Where are your investments?” You want to look for an advisor that is practicing what they preach. You do not want to partner with an advisor that only has a few thousand dollars in a couple funds. You’re looking for the advisor that has a larger portfolio than you do. Only take advice from people that are doing want you want to be doing.
Did you know that RRSP’s are a great way to defer your income tax payment but that is all it is. You will still pay taxes on it one day.
You also can not use the losses in your RRSP to show a capital loss.
If you want to learn more about the Mutual Fund world listen to this behind scenes interview conducted by Greg Habstritt of Master Wealth Training. Greg interviews a highly successful financial advisor that is sick and tired of how the financial industry is selling and advising people with only one person in mind. The industry is set up to always earn money from investors not investors earn money from their investments.