Fees And Taxes Really Matter

Understand What You’re Paying!

Every investment has a cost and advice isn’t free, but it is an important first step to simply understand what you are actually paying.

Most investors don’t pay attention to this detail and it is easy to pay very high fees if you are investing in traditional mutual funds or structured products with a blind eye.

So make sure you have a clear understanding of all the fees that you are paying.

Why Do Costs Matter?

Investment costs can add up and compound along with your investment returns.

Imagine you have $100,000 invested and earned 6% a year for 25 years with no costs or fees, you’d actually end up with about $430,000.

If, on the other hand, you paid 2% a year in costs you’d only have about $260,000.

The 2% you paid every year would wipe out almost 40% of your final account value!

Disclaimer: This example is for illustration purposes only.

Taxes Are Worse Than Fees For Protecting Your Wealth…

Building a tax efficient investment strategy is probably one of the single largest drivers for how much money is left in your pocket at the end of the day….

The hallmarks of a tax efficient strategy are quite complex and require an investment advisor but they all share some common themes

Low turnover, using tax shelters like RSP’s and TFSA’s and focusing on dividends and capital gains!

So Why Pay Fees And What Do You Get?

As an investment advisor I do charge fees to manage my client’s portfolios BUT I do try and ensure that I am adding more value at a fair and reasonable cost relative to the expected rate of return.

And that value includes a whole range of services but primarily focuses on the overall investment strategy and financial planning to minimize taxes and help you reach your financial goals!

Please Contact us to discuss your particular investment and tax strategy!

Contact Michael Bowen

416-864-2628 ¦  1-866-269-7773