mutual funds are killing your retirement | General financial discussion | Discussion forum

kilarney said

This site really shows how the financial industry makes so much money on fees. Download the free App at the bottom of the page to see what your MER rates are doing to your money.

"In this example, a 2.69% MER mutual fund consumed 92.53% of your original contribution over 25 years and left you with 49.42% less money due to the effect of fees. Now, keep in mind you won’t be able to eliminate fees completely so comparing this to a 0% fee option is best used for comparison’s sake. For example, a 1.53% fee option still consumed 31.99% of your “potential” portfolio. However, you would’ve been almost $60,000 richer after 25 years and an initial $100,000 contribution. You also saved over $30,000 in fees. Now you see why its all about low costs. Download the spreadsheet and plug in a MER of 0.25% – 0.40% and see the effect. "

http://wheredoesallmymoneygo.c.....over-time/

I think that most investors know what you are saying. The investor is being raped by the mutual fund company, your investment company and your advisor.

But wake up every one!!!!!

So you invest in mutual funds, shares, ETF's, and GIC's in your RRSP portfolio.
You collect a small company penison
You collect CPP
You collect OAP
You might collect GIS

But wake up every one!!!!

When you are 71 you buy a RRIF and are forced to withdraw from it annually and guess what.....you will be paying income tax on it at the same rate you would have when you made your contributions.

So any ideas....put them here https://www.highinterestsavings.ca/forum/general-financial-discussion/income-smoothing-cashing-in-your-rrsp-after-retirement/

So how do you beat the tax man at age 71?