Canadian Money Forum banner

1 - 9 of 9 Posts

·
Banned
Joined
·
2 Posts
Discussion Starter #1
I'm very new at this, in fact I seem to be frozen in the process of deciding where to invest as far as a TFSA goes. I have been reading about ETFs and index funds, and I had decided on TD e-series as a good starting point for a TFSA. However, I've gotten all confused talking to an IG person about their Income Plus Portfolio Fund. Does anyone have any insight for me on which would be better, less expensive perhaps, etc? Thank you.
 

·
Registered
Joined
·
7,252 Posts
The IG portfolio mutual fund has an MER of 2.45% (atrocious).
It's return since inception (2003) is a meagre 4.2%.
You could have done better with GICs during the same period.
It is shameful to say the least.
You can do much better with the couch potato strategy using TD eSeries funds.
TFSA is well suited for implementing a couch potato since the small contributions do not merit constant monitoring/attention and should ideally run on auto-pilot.
Also, the returns from the Canadian Bond fund within the couch potato would be protected from tax.
 

·
Registered
Joined
·
2,953 Posts
Use a couch potato approach with either TD e-series funds or ETF's.

Reference: www.canadiancouchpotato.com

Avoid high fees like the plague!! Just calculate how they would add up over the years and eat into your long term returns. This is all the more important if we are entering a prolonged period of single digit annual returns.

Keep your fees as 'little' as possible. Keep YOUR money in YOUR account rather than financially supporting the financial services industry, including your friendly, neighbourhood advisor.

Let him or her peddle their expensive wares to some other unsuspecting investors.

We grow too soon olde and too late schmart.
 

·
Banned
Joined
·
2 Posts
Discussion Starter #4
Thank you for your replies. I've been reading about the couch potato approach for the last few weeks and am finding it all very fascinating. I'm not sure how to compare costs for my specific scenarios yet, that's my next step.

I would welcome any book recommendations, especially those pertinent to a beginner with under $30K to invest (at least until next year).
 

·
Banned
Joined
·
967 Posts
If you put $30k in the IG fund, at 2.45% MER, IG will take about $735 from you every year. TD e-series Canadian Equity, at 0.31% MER, will only cost $93.

I'm not saying the TD e-series is better than IG, but you'll have to explain to yourself why IG is worth the extra $642 in cost.
 

·
Banned
Joined
·
77 Posts
Thank you for your replies. I've been reading about the couch potato approach for the last few weeks and am finding it all very fascinating. I'm not sure how to compare costs for my specific scenarios yet, that's my next step.

I would welcome any book recommendations, especially those pertinent to a beginner with under $30K to invest (at least until next year).
http://www.empoweredinvestor.ca/

You cant go wrong with this, well written, up to date, to the point !
 

·
Banned
Joined
·
77 Posts
Thank you for your replies. I've been reading about the couch potato approach for the last few weeks and am finding it all very fascinating. I'm not sure how to compare costs for my specific scenarios yet, that's my next step.

I would welcome any book recommendations, especially those pertinent to a beginner with under $30K to invest (at least until next year).
You cannot go wrong with TD e-series.

Here some articles that will help you get started:

http://www.moneysense.ca/2009/12/17/the-complete-couch-potato-roadmap/

http://www.moneysense.ca/2010/05/27/become-a-couch-potato-investor-with-less-than-5000/

http://www.canadiancapitalist.com/investing-in-td-e-series-funds-for-your-resp/
 

·
Registered
Joined
·
6,865 Posts
Dealing with IG can hurt your financial health. They have always suffered from high fees and mediocre performance. At least with e-series you are only exposing yourself to market risk with a little friction costs.
 
1 - 9 of 9 Posts
Top