Steve_P

Well it certainly thins out the herd.

You don't smoke by any chance do you?

ChrisBoar

Maybe in the short term, but that's high risk for your pension funds. Pretty much no-one beats the market in the long term. 90% plus of mutual funds can't.


I'd argue it is for the long term.

Sure, show me any way of investing that doesn't incur a cost. But you can take educated decisions to keep your costs down. In my books it's a no brainer to invest in index funds that have costs 10-15 times less than mutual funds, fees that won't halve your return in the long run.

johnh009

There are hundreds of strategies. At the risk of being put in front of a firing squad and shot, I will say it is up to the individual to decide what is best. But, I will stick my neck out and say that anyone who has followed even the most simplest of strategies and bought Royal Bank shares (or most banks for that matter) for the past 10 to 15 years and reinvested the dividends has done okay, incurred minimal fees, and stayed on the favourable side of the tax man. Nothing guaranteed of course. If you buy shares inside an RRSP, do you lose your 50% tax free advantage on gains at withdrawal? Or do they credit you with this?

johnh009

No, I gave it up when I was 11 (seriously), I discovered alcohol. The limited money I made from my newspaper round only allowed for one or the other. But, talking of pensions, the most gains I have ever made by far has been on tobacco company shares. I suppose I am just like the government, telling everyone not to smoke but love the revenues.

johnh009

Here is an interesting article about buying shares inside a RRSP:

http://www.theglobeandmail.com/globe...rticle1962184/

iaink

According to this, over half of those canadians who have a traditional workplace "defined benefit pension" scheme have them because they work for the government...
http://www.theglobeandmail.com/repor...rticle2015191/