Savings Plans in Canada - mutual funds.?
Dec 20th 2019, 9:09 pm
#1
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Savings Plans in Canada - mutual funds.?
My son and family immigrated to BC in Canada three yrs ago and are now thinking about putting some money in savings plans such as RESP, TFSA etc. Interest rates are of course low, so they’re thinking of savings in a mutual fund or something linked to shares. They have no knowledge of whom to get honest advise from, apart from Banks who probably recommend their own products. In the UK of course Banks usually recommend products where they get the highest commission. Where to turn? I believe there are direct online ( possibly discount) firms in Canada as there are in UK ? I don’t think there is the equivalent of Martin Lewis website MoneysavingExoert or comparison websites,? Any help on this subject will be much appreciated.
Dec 20th 2019, 10:24 pm
#2
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Re: Savings Plans in Canada - mutual funds.?
Every Canadian I know has a financial adviser, some with banks, some independent.
Dec 21st 2019, 12:39 am
#3
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Location: Moncton, NB, CANADA
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Re: Savings Plans in Canada - mutual funds.?
Dec 21st 2019, 12:03 pm
#4
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Re: Savings Plans in Canada - mutual funds.?
Don't waste time or money with Advisers or mutual funds in Canada. They are a rip off and expensive charging 2-3%, some of the highest charges in the western world.
For low cost mutual funds charging 0.3-0.5% have a look at TD eseries.
TDB900 for Canada
TDB902 for USA
TDB911 for world
Otherwise, invest in a one stop etc like XGRO or VGRO using a discount broker such as Wealthsimple
Moneysense in Canada provides useful information similar to Money savings expert in the UK 🇬🇧
For low cost mutual funds charging 0.3-0.5% have a look at TD eseries.
TDB900 for Canada
TDB902 for USA
TDB911 for world
Otherwise, invest in a one stop etc like XGRO or VGRO using a discount broker such as Wealthsimple
Moneysense in Canada provides useful information similar to Money savings expert in the UK 🇬🇧
Dec 21st 2019, 4:22 pm
#5
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Re: Savings Plans in Canada - mutual funds.?
My son and family immigrated to BC in Canada three yrs ago and are now thinking about putting some money in savings plans such as RESP, TFSA etc. Interest rates are of course low, so they’re thinking of savings in a mutual fund or something linked to shares. They have no knowledge of whom to get honest advise from, apart from Banks who probably recommend their own products. In the UK of course Banks usually recommend products where they get the highest commission. Where to turn? I believe there are direct online ( possibly discount) firms in Canada as there are in UK ? I don’t think there is the equivalent of Martin Lewis website MoneysavingExoert or comparison websites,? Any help on this subject will be much appreciated.
A good article covering the options of "do it yoursef", "Robo Advisors" and using an "advisor". There are also links to the relevant "Robo advisor" websites so you can take a look at the options. Hope this helps
https://www.moneysense.ca/columns/ye...rth-the-money/
Dec 21st 2019, 4:23 pm
#6
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Re: Savings Plans in Canada - mutual funds.?
I thought you would pop up glendem4.. anything to do with finances 
Would you be so kind to make it clear that you live and work (for an investment firm) in the UK so that new people are aware. Thank you.
To the OP - please take advice from people who actually live in Canada rather than others...
Would you be so kind to make it clear that you live and work (for an investment firm) in the UK so that new people are aware. Thank you.
To the OP - please take advice from people who actually live in Canada rather than others...
Last edited by Siouxie; Dec 21st 2019 at 4:49 pm.
Dec 21st 2019, 6:26 pm
#7
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Re: Savings Plans in Canada - mutual funds.?
I thought you would pop up glendem4.. anything to do with finances
Would you be so kind to make it clear that you live and work (for an investment firm) in the UK so that new people are aware. Thank you.
To the OP - please take advice from people who actually live in Canada rather than others...
Would you be so kind to make it clear that you live and work (for an investment firm) in the UK so that new people are aware. Thank you.
To the OP - please take advice from people who actually live in Canada rather than others...
Seriously considering starting a FREE service like Money Savings Expert here in Canada as there appears to be a great demand.
Last edited by Siouxie; Dec 23rd 2019 at 3:41 am.
Dec 21st 2019, 10:29 pm
#8
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Location: Moncton, NB, CANADA
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Re: Savings Plans in Canada - mutual funds.?
Dec 21st 2019, 11:37 pm
#9
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Re: Savings Plans in Canada - mutual funds.?
No. I worked for Mackenzie Investments. Some people can be so cynical!! ONLY JOKING.
I am happy to provide any impartial advice. I know people can be suspicious, especially in these forums. Just for clarity, I would also suggest Quest trade for anyone who wants to open their own brokerage account. National Bank offer a free trading service as well when you purchase 100 lots at a time.
I am happy to provide any impartial advice. I know people can be suspicious, especially in these forums. Just for clarity, I would also suggest Quest trade for anyone who wants to open their own brokerage account. National Bank offer a free trading service as well when you purchase 100 lots at a time.
Dec 22nd 2019, 3:51 pm
#10
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Re: Savings Plans in Canada - mutual funds.?
Regarding the RESP, whatever you do, DO NOT start in a Group RESP or a Scholarship Trust. These schemes have high start up fees (commissions to the salesman) and low interest payments. I suggest Googling "RESP plans Canada reviews".
Dec 22nd 2019, 4:19 pm
#11
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Re: Savings Plans in Canada - mutual funds.?
Everyone's financial situation is different. Keep in mind that financial advisor's whether they be with a bank or other planners such as Investors Group, Raymond James, Edward Jones etc are sales people in the end. They are trying to sell you a product that may or may not be in your best interests. I would suggest meeting with a fee only planner who can look at your particular situation and suggest the best course of action. They are not selling products, no vested interest so the recommendations should be mostly free of any inherent product sales bias.
One of the biggest aspects to investing that you actually have control over is cost. Fees matter and do add up. It depends on your comfort level. There are various online 'robo-advisors' or you can open your own online brokerage account and self-direct your investing. Qtrade Investor and QuestTrade consistently receive high recommendations from various rankings. Qtrade also has an office in Vancouver if you want to meet in person.
Asset allocation ETFs are a great way to invest. Low fees and diversification. The most popular asset allocation ETFs are offered by Vanguard, iShares and BMO. (Some Vanguard examples are VBAL and VGRO).
One of the biggest aspects to investing that you actually have control over is cost. Fees matter and do add up. It depends on your comfort level. There are various online 'robo-advisors' or you can open your own online brokerage account and self-direct your investing. Qtrade Investor and QuestTrade consistently receive high recommendations from various rankings. Qtrade also has an office in Vancouver if you want to meet in person.
Asset allocation ETFs are a great way to invest. Low fees and diversification. The most popular asset allocation ETFs are offered by Vanguard, iShares and BMO. (Some Vanguard examples are VBAL and VGRO).
Dec 22nd 2019, 11:39 pm
#12
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Joined: Oct 2003
Posts: 38,613
Re: Savings Plans in Canada - mutual funds.?
I live and work in Canada and not the UK. I emigrated to Toronto in May 2018 and have worked for the past 18 months for a Wealth Management company in downtown Toronto.
Seriously considering starting a FREE service like Money Savings Expert here in Canada as there appears to be a great demand.
<snipped>.
Seriously considering starting a FREE service like Money Savings Expert here in Canada as there appears to be a great demand.
<snipped>.
For an example please take a look at Chc4me profile.
I have snipped the part of the post suggesting anyone PM you direct for advice.
Dec 23rd 2019, 3:54 pm
#13
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Re: Savings Plans in Canada - mutual funds.?
As a professional in the industry- Mutual funds charges are not transparent like you see with a reputable advisor. For example where I work our fees are usually 1.25% of the investment value. Also if you invest in Mutual funds the MER (similar to our fee)- is MUCH higher AND often times Mutual funds investments will overlap in the companies stocks they hold, so you might not be getting the diversification you think you are getting.
IAs a a starting position i.e.until you build up a reasonable amount, most people do seem to start with Mutual funds from their banks, once they get to around $400,000 level then you can move over to an advisor. Another thing to bear in mind is with an advisor, any fees you pay to them in a non registered account can be offset against taxes, you do not get this option with mutual funds because the fees are embedded within the price of the unit.
IAs a a starting position i.e.until you build up a reasonable amount, most people do seem to start with Mutual funds from their banks, once they get to around $400,000 level then you can move over to an advisor. Another thing to bear in mind is with an advisor, any fees you pay to them in a non registered account can be offset against taxes, you do not get this option with mutual funds because the fees are embedded within the price of the unit.
Dec 23rd 2019, 8:33 pm
#14
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Re: Savings Plans in Canada - mutual funds.?
B2B Bank - 3.3% Savings Account https://b2bbank.com/
Motive Financial - 2.8% Savings Account https://www.motivefinancial.com/
Otherwise there are other options like Questrade and Wealthsimple as others mentioned and you can buy some index fund ETFs.
Motive Financial - 2.8% Savings Account https://www.motivefinancial.com/
Otherwise there are other options like Questrade and Wealthsimple as others mentioned and you can buy some index fund ETFs.
Dec 31st 2019, 2:19 pm
#15
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Re: Savings Plans in Canada - mutual funds.?
I am very grateful for all the replies re RESP. RRSP and mutualfunds ets. and as suggested by several replies I’ve have gone online and find Questrade seem the best bet - low fees and good conditions generally. I,ve also since read that instead of investing in mutual funds a good alternative is investing in index funds I.e tracking the global index or the S and P 500. One well known platform, again with low charges seem to be Vanguard.
Can I ask one other thing. - The Canadian Pension plan. Have read up on how it works but if an Expat arrives at age 47 with family, obtains residency at and at age 50 and starts payments to the CPP. - is he able to make additional supplementary payments? Equally important, is that a good investment?
I read that in due course the max CPP pension will increase to 33.3% if average earnings, with appropriate increase in employee/ employer contributions.
I am asking this really for the benefit of my son, wife and family who immigrated to BC just over 3 yrs ago. My son,s wife is a nurse working for the state but my son is a somewhat poorly paid self employed physiotherapist who only gets paid when the clinic where he works, gives him clients. He therefore gets no pension, paid hols or sickness benefits. Re the CPP scheme it s not like the much better UK scheme which gives a fairly high min pension even if say only 15 yrs NI contributed. Any advice will be much appreciated. I,ll try also to post a separate message on the subject. Thanks so much.
Can I ask one other thing. - The Canadian Pension plan. Have read up on how it works but if an Expat arrives at age 47 with family, obtains residency at and at age 50 and starts payments to the CPP. - is he able to make additional supplementary payments? Equally important, is that a good investment?
I read that in due course the max CPP pension will increase to 33.3% if average earnings, with appropriate increase in employee/ employer contributions.
I am asking this really for the benefit of my son, wife and family who immigrated to BC just over 3 yrs ago. My son,s wife is a nurse working for the state but my son is a somewhat poorly paid self employed physiotherapist who only gets paid when the clinic where he works, gives him clients. He therefore gets no pension, paid hols or sickness benefits. Re the CPP scheme it s not like the much better UK scheme which gives a fairly high min pension even if say only 15 yrs NI contributed. Any advice will be much appreciated. I,ll try also to post a separate message on the subject. Thanks so much.