How a young couple can kill $142,000 in debt and start investing + MORE Mar 22nd

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Julie and David live in Calgary with their two daughters, ages 10 and 7. David, 40, is a cable technician earning $150,000 annually while Julie, 37, works part-time at a retail store near home earning $6,000 annually. In 2014, their lives changed when David fell on the job and injured his left side, leaving him disabled for two years.
Through physiotherapy, massage therapy and other alternative medical care he has been able to make an almost complete recovery. “It’s been a long road but David is now back at work and is able to function at about 90 per cent of his previous abilities which is wonderful,” says Julie.
For the months that David was off work, the couple quickly started drowning in debt. Right now, they have about $142,000 in debt that includes $46,000 in high interest rate credit card debt, an $11,000 car loan, a $5,000 student loan, a $12,000 bank loan, a $52,000 line of credit, $1,250 in bank overdrafts as well as $14,000 from family and friends.
As renters, they have no mortgage but they’ve still managed to load up on debt…

Alberta could slay its deficit in one fell swoop, some say. Boost business investment and jobs. Build more schools and hospitals. Even make it so most Albertans pay zero in provincial income tax. Yes, Albertans have been talking about adding a provincial sales tax for decades. So why hasn’t it happened?

Q. How do I know if my advisor is charging me too much in fees? How do I know if he is giving me the best advice? Should I leave what I have invested with him at Sun Life (about $75,000) and start putting the rest of my future savings with someone else? I am 61 years old and will retire at 65 with a full pension from a provincial police service. Any advice would be appreciated.
—Carol
A.You know, Carol, it may be the fund fee is too expensive and not your advisor’s fee.
A mutual fund advisor/dealer generally makes about 1% on the amount invested. A fee-based advisor/dealer makes 1% to 1.5%, and yet the all-in-cost working with a fee-based advisor is often less expensive than the mutual fund advisor. This is due to product selection.
Here is a breakdown of the fees on a mutual fund with a 2.5% combined MER/TER:

 $637/yr. to the advisor ($75,000 x 1%) x 85%
$113/yr. to the dealer, Sun Life ($75,000 x 1%) x 15%
$1,125/yr. to the product manufacturer, Sun Life $75,000 x 1.5%
Your total annual fee is $75,000 x 2…