Making a low cost portfolio even cheaper + MORE Jul 15th

There’s a retirement crisis brewing in Canada. Canadians carry more debt than ever, as savings rates drop to all-time lows. A couple decades ago you’d have the safety net of a well-funded pension plan; how times have changed! Pension plans are facing a perfect storm; the retirement of the baby boomers, coupled with the prolonged low interest rate environment, is leading to massive pension plan challenges and deficits.
Pension Providers Facing Deficits
In the public sector, the Ontario Municipal Employees Retirement System (OMERS) is facing a $10-billion solvency deficit, while Canada Post is facing a $6-billion deficit. Things aren’t much better in the private sector: Via Rail is facing a $419-million deficit. Employers faced with massive pension deficits are pushing the risk to employees. They are switching from defined benefit plans where employers bear the risk by guaranteeing a set pension at retirement, to defined contribution plans where your pension is based on your investment returns…

Filed under: Budgeting & Planning, Economizer, Travel
By Molly McCluskey
Daily Finance

Travellers looking to save costs have long sought out the best time to buy airfare, the best way to maximize points, how to find the best credit cards, use the best apps and even make the most of a hotel stay.

But while hidden fees can derail a trip’s budget, so too can deceptively cheap rates. Travelers who book on a budget airline may be surprised to find the savings can be marginal — even nonexistent.Continue reading How Much Is that Cheap Flight Really Costing You?How Much Is that Cheap Flight Really Costing You? originally appeared on Walletpop Canada on Thu, 11 Jul 2013 08:47:00 EST. Please see our terms for use of feeds.Permalink | Email this | Comments

The Sleepy Portfolio was designed to be an ultra low-cost portfolio and the exchange-traded funds (ETFs) used in the portfolio were the cheapest available at that time. As you can see in the following table, the Sleepy Portfolio currently costs just 20 basis points (0.20 percent) per year. In other words, if you invest in a portfolio like the Sleepy Portfolio, you’ll incur a cost of just $200 per $100K of portfolio balance. If the portfolio were assembled with mutual funds that carry an average cost of 2.5 percent instead, the same portfolio would cost $2,500 per $100K. Costs matter a great deal in investing.

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Product
Cost
Weight

TD Investment Savings Account (TDB8150)
0.25%
5…