So let’s say a mutual fund MER is 2.5%, which is roughly average.

SO if your mutual fund returns 7.5%, you receive a 5% return. TD (or whoever) takes that 2.5% cut from you. The tricky part is that your statements just say a 5% return.

There have been studies that show a 2.5% MER cuts a monstrous swath through your finances over the years. Basically, you’re always paying 2.5% of your return, even if the fund underperforms the market.

Conversely, you can get a TD efunds MER at 0.4% or so. So if the fund returns 7.5%, you receive 7.1%.

@Ioana – +1 here. I’ve done the same thing. It really does seem scary at first (ah! buying index funds, what am I doing?) but it’s really quite easy and cc does a nice job of explaining the theory and how to do in practice (it’s not hard, and doesn’t require much money up front).

I think that banks do serve a purpose, but I also think that most individuals who have experience with banks are frustrated with the low interest rate of return on their investments in general, especially when banks report record profits year over year. It’s nothing with the bank ‘people’ themselves, as I know I’ve been helped many times with products and such, even getting exceptional cc rates from some, while others are almost as high as the dept. store rates.

It’s just a general frustration with wondering how we can get offered a paltry 0.5%-2% rate on RRSPs/MFs, etc., pay 6%+ on loans, yet banks are making astronomical profits from the backs of those of us who invest hard earned dollars only to see increases in the pennies.

If you can figure out how to change things so that consumers want to invest in bank products at more competitive interest rates, then you’re definitely getting a higher ranking with Jane Does and Joe Schmucks in the world! (at the very least, for those who try to put you in the same pool as lawyers and the like!!)

Oh, and to clarify, I don’t think you’re like lawyers…at least you return phone calls!

Gail and staff please note that the above link is selling its own book via its link. It is usiing key words from the blog here, such as “cemetary plot” which only I mentioned as key words to lead someone to this info. There is no mention on your web site that when I post here that it will be linked to another site. I personnally do not think it belongs here, else you should warn people that their posts will be linked to outside web sites.

Personnally I like it here. This is a great place for wonderful, insightful, and truthful Gail advice, and it also has wonderful posts from like minded people whom I also can learn from. I want my posts to stay here and not on other sites.

Anne: I deleted the offending post! g

Well said Kevin!

There are a lot of places to get your information. You have to be aware of where the information is coming from and the motive for the way the information is written. Trust your instincts as if something seems too good to be true, it probably is. This is one of the reasons that the experts push diversification and we’ve all heard people say “don’t put all of your eggs in one basket”

In the end as a debtor or investor or somewhere in between you are the one that has to live by the choices that get made. It is important to get professional advise and use professional services. At the end of the day, they will help you but you are the one that has to live with the consequenses. The best professionals are the ones that provide the advise they themselves will follow.