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How to read your investment statements Oct 16th
Failing to read your investment statements that arrive each month creates unnecessary risk and missed opportunities to catch errors, track progress, and stay aligned with your financial goals. Learning how to read your investment statement takes only a few minutes each month and provides important o.... More »
Moving money from RRSPs, RRIFs and TFSAs in retirement Jan 13th
Ask MoneySense
My husband and I are retired with $200,000 in our TFSAs, $230,000 in our RRSPs and RRIFs, and we have an emergency fund. Our household income is $85,000 a year.
My husband may need nursing home care at some point, so I have been moving assets from the RRSPs to our TFSAs for flexibi.... More »
Should I draw down my RRIF to avoid estate taxes? + MORE Apr 22nd
Ask MoneySense
Is it a good idea to withdraw more money monthly than one needs from one’s RRIF? What about beginning a regularly automated transfer of this extra money to one’s non-registered investments so that there is less money in the RRIF account upon death? As a result, the estate will be .... More »
‘It’s a big investment’: Ottawa announces major investment in Atlantic Canada’s aerospace sector - BNN Bloomberg May 13th
‘It’s a big investment’: Ottawa announces major investment in Atlantic Canada’s aerospace sector BNN BloombergSee more headlines & perspectives on Google News.... More »
What will happen to Afghanistan’s economy under Taliban rule? - Al Jazeera English Aug 19th
What will happen to Afghanistan’s economy under Taliban rule? Al Jazeera EnglishAfghan central bank's $10-billion in assets likely not within reach of Taliban, officials say The Globe and MailAfghanistan: Pakistan fences off from Afghan refugees BBC NewsFATAH: This.... More »
PlayStation Canada promises more PS5 stock by the end of the year MobileSyrup10 next-generation games to keep your PS5 or XSX humming this holiday Financial PostHere’s December 2020′s PlayStation Plus Games KotakuAnother PS5 system update is here which “improves system performance” GamesradarHow Sneaker Culture Predicted PS5 and Xbox Series X Scalpers IGNView Full coverage on Google News
Switching from mutual funds to ETFs
– moneysense.ca
Are you considering switching from mutual funds to Exchange Traded Funds (ETFs)? If so, you are not alone. Growing numbers of Canadians are making the move. This is evidenced by 2020 fund statistics published by The Investment Fund Institute of Canada, which show net redemptions of mutual funds during September, while net purchases of ETFs were $669 million for the month and $32 billion year-to-date.
Three factors are driving this shift in investor behaviour. First, there is growing awareness that high costs embedded in mutual funds can severely limit their long-term returns. For example, consider a mutual fund with a typical 2% management expense ratio (MER), which earns an average compound annual return of 6% before costs. Investors selling their fund after 30 years would keep less than half the fund’s pre-fee total return with the rest consumed by fees. In contrast, investors in an index ETF with a typical 0.20% MER with the same 6% pre-fee return over 30 years would retain over 90% of the total return (you can run your own scenarios on the T-Rex Score calculator)…
Three factors are driving this shift in investor behaviour. First, there is growing awareness that high costs embedded in mutual funds can severely limit their long-term returns. For example, consider a mutual fund with a typical 2% management expense ratio (MER), which earns an average compound annual return of 6% before costs. Investors selling their fund after 30 years would keep less than half the fund’s pre-fee total return with the rest consumed by fees. In contrast, investors in an index ETF with a typical 0.20% MER with the same 6% pre-fee return over 30 years would retain over 90% of the total return (you can run your own scenarios on the T-Rex Score calculator)…
