Canadians have a love-hate relationship with our banks. We love the stability and the way banks made it through the financial crisis unscathed, but we hate the fact that they are only stable and unscathed because of how much money they are making off us, their clients.
Canadians have a love-hate relationship with our banks. We love the stability and the way the banks made it through the financial crisis unscathed, but we hate the fact that they are only stable and unscathed because of how much money they are making off us, their clients.
It’s commonly accepted that big banks come with high fees, and in many cases we have no choice but to pay those fees. However, when it comes to investing (where high fees dramatically eat away at your potential returns), Canadians are beginning to take notice of new alternatives like Nest Wealth. After all, you invest to build wealth for the life you want to live, right? So why would you keep giving away up to 50 percent of your potential wealth in high and hidden fees if you don’t need to anymore?
Traditionally, banks and other financial advisory firms charge clients a percentage of everything they’re asked to manage. For investors, this means that as your wealth increases, your fees do too – and in most cases, you receive exactly the same level, and quality, of service. Put like that, it sounds pretty ludicrous… and it is. What’s even more ludicrous is that the average fees charged by the Canadian banks and mutual fund companies are the highest in the developed world!
What do these fees mean to your ability to grow your wealth?
Well, over the course of an investor’s life, the average mutual fund investment in Canada could take away over 50 percent of your potential wealth through high, hidden, and constantly growing fees. It’s shocking that doing this kind of damage isn’t illegal.
Sometimes percentages aren’t as easy to relate to as dollar amounts, so try this on for size: an average investor could be losing hundreds of thousands of dollars by retirement just by paying the average 2.5 percent fee on a Canadian mutual fund compounded over time. Ever wonder how banks generate billions in profits each year? Well now you can stop your wondering — you’ve been paying them lots and lots of money.
The good news is that Canada, finally catching up to other countries, now has real choices for investors. For example, Nest Wealth, Canada’s first online advisor, wants to make high and hidden fees a thing of the past. So rather than charging clients in the out-dated way that strips them of a percentage of their money, Nest Wealth charges a single flat monthly fee that starts at $20, and is capped at $80 – no matter how large your investments grow.
Finally, a solution for wealth management that makes sense (and a huge difference to your bottom line)
Changing the fee structure (from what banks would typically charge you) has provided an immediate way for Canadians to move from being able to just keep 50 percent of their potential wealth to being able to keep over 95 percent of their potential wealth. As mentioned before, the difference can be hundreds of thousands of dollars by the time you retire. (Click here to create a personalized calculation of what the difference might be for you!)
So, how high are the investment fees you’ve been paying?
Investment fees in Canada are way too high! If you’re still paying any mutual fund company or advisory firm a large percentage of your assets to provide their services, it’s time you asked “why”. If the answers you get aren’t worth hundreds of thousands of your dollars, then perhaps it’s time you started looking for a better alternative.
If you’re interested in building your wealth and freeing up some of your time for the things that money can’t buy, go ahead and see the type of personalized portfolio that would be built for you at www.join.nestwealth.com.
Learning about your fees is your right and it’s completely free, with no strings attached. You’ll have no obligation to switch to Nest Wealth, but you’ll probably want to.