A recently released study by the OSC has concluded that many investors receive very little advice for the fees that they pay to investment advisors/ers. The study challenges the rational for Mutual Fund Trailing Commissions and Deferred Sales Charges, fees that the investment industry claims are necessary so that small investors receive advice that they would otherwise be unable to obtain. Indeed, many small investors have no idea that they are paying on average 2+% fees on mutual funds, and that half of that goes to the advisor/er that sold them the mutual fund. They often are not aware that these fees come off their investment principle every year, whether they make any money or not. View the story of the report here:
Investing For Retirees would like to know if our readers feel that they have been given adequate investing advice for the fees paid. Please comment on this story by answering these four questions:
1. Did your advisor/er discuss your investment income needs (particularly if you have mandatory RIF withdrawals) ?
2. Did your advisor/er discuss tax optimization and different types of tax efficient investments ?
3. Did your advisor/er discuss the cost of fees of various mutual funds, and how those funds compared to the relevant index over the past 3-5 years ?
4. Did your advisor/er present you with an asset allocation strategy designed specifically for you ?
All responses will be kept confidential. An aggregated response will be confidentially passed on to the OSC’s Investor Advisory Panel.
Thanks and good investing.