Keep in mind too that companies that don't offer matching programs may still offer access to low - cost mutual funds which will be professionally managed and rebalanced for you annually at a much lower rate than the 2.5 % fee your bank's
standard mutual fund offerings tend to charge.
And the discussion I'm hearing more and more from those asset managers is «if advisors don't want to
use standard mutual fund products anymore, then we have to pivot and go the other direction.
You know you're gouging consumers when politicians can point out that the (supposedly frumpy) public sector could credibly do a better (Read: More cost - effective) job of helping people prepare for retirement than
standard mutual fund options available in the (supposedly lean) private sector.
At the fundamental level, there are three varieties
of standard mutual funds: Equity funds Fixed - income funds Money Market funds Equity funds are one of...
They have a better return than
the standard mutual fund, too.
Wary investors opened accounts to stash the money they pulled out of riskier products, while others decided the freedom of a TFSA was better than the uncertainty of
a standard mutual fund investment.
The total cost of ownership depends upon how much your adviser is charging you, so it would be unfair to compare F - series funds to
standard mutual funds, straight up.
The end result is that index funds have lower fee cost than
standard mutual funds.
In both instances, the reason the parties cite this new direction in public policy is their belief that the CPP is more cost - effective than
standard mutual funds.
I spent five minutes explaining my philosophy of how to invest and describing why I prefer index funds to
standard mutual funds.