Wednesday, February 22, 2017

Reviewing your statement

Mutual Fund Investing
Understanding cost and value

 The following breaks down the cost of investing in mutual funds, and what you need to know about MER's (management expense ratio).

Management Expense Ratio (MER)

  • You don't pay it directly
  • It's the built-in cost of owning a mutual fund
  • It's taken out of the fund before the performance is calculated

Portfolio value: $100,000
Approximate value to invest in first year: $2,200 (2.2% MER)  

Breakdown the ongoing cost to invest
Mutual Fund Company
Investment management expertise
  • Fund research
  • Analysis
  • Insight
Mutual Fund Dealer
  • Processes investments
  • Partners with investment representatives to keep your best interests top of mind
  • Pays a portion of the trailing commission to your investment representative
Investment Representative
  • Provides financial advice, service and a plan to help you stay on track
  • Adjusts your plan for different stages of your life
  • Helps you create savings habits that can pay off in the long run
  • Offers access to a strong and stable company built on a foundation you can trust
Why it's worth partnering with an advisor
Partnering with a financial security advisor to create a sound financial security plan can help you deal with the inevitable bumps in life. On average...

  • 60% of advised households feel they can deal with unexpected financial emergencies
  • 65% of advised households believe they can deal with tough economic times
  • 73% of advised households feel confident that their loved ones will be looked after financially if something should happen to them 
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