FP Summer School: Know what fees you’re paying and how to minimize them
August 2, 2014
By Melissa Leong
Summer school isn’t a punishment. Think of it as a second chance or bonus education. But instead of improving your GPA, we will help you improve your credit score. That might mean repairing your finances with better saving, earning more money, paying less taxes or getting smart with your investments.
This week: Fee facts 101
Course description: Few things in life are free. Sure, there are free samples of protein bars at grocery stores and free hand-me-downs from grandma, but it costs you time to wait in line for the snack and effort to drop unwanted items off at donation centres.
So it should come as no surprise that it costs you money to manage your money — whether it’s banking fees, ATM fees or mutual fund fees. Or maybe it is a surprise to you.
Many mutual fund investors don’t know what they are paying or even that they are paying anything at all. According to a 2013 study by Environics of Canadians over 25-years-old and with more than $25,000 in investable assets, 25% said that they did not pay their advisor either directly or indirectly.