Being a Canadian I obviously keep a close eye on the financial scene here in Canada. The RRSP deadline is fast approaching tomorrow March 1, 2010. This deadline means you must have your registered investments purchased by end of day if you want to claim them against the 2009 tax year. This is quite a hectic day for mutal fund advisiors and pretty much any financial planner that offers some type of registered investment.
Many Canadians will just speak with their personal financial planner or go to a bank and purchase whatever mutal fund they are currently promoting. Many of these funds have very little upside wich is offset by high fees. they may not tell you about these fees unless you ask. Since the fees are taken from your balance after you purchase the finds you generally do not notice them missing. So yes, you can be starting your investment down 1-3% regardless of market conditions. Each year these fees will be deducted from your account once again. These fees can eat you alive while they destroy any possible gains and can significantly decrease your retirement potential when calculating the year over year expense.
Combined with a heavy taxation rate when withdrawing this money during your retirement may cause many people to rethink their savings strategy. Some of the reason I mentioned are why the folks at the Divident Growth site refuse to be sold mutal funds.
Check out these links and ensure you are educated. Everyones situation is different so make sure you make choices that are right for you.
3ZWG5FV62M99
