Life

Next to Buying a Home, Investment Fees can be the Average Canadian Household’s Largest Single Expense

By Nest Wealth on 11/07/2016Article 3 Minute Read

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Over the course of an investor’s life, mutual fund fees can end up costing the average Canadian household $323,654.40.

Recently we performed a study on Canadian investors and the fees paid over the course of an average Canadian investor’s lifetime, and discovered that next to buying a home, fees paid on investments can be the single biggest lifetime expense many Canadian households will have to deal with. Over the course of an investor’s life, mutual fund fees can end up costing the average Canadian household $323,654.40. 1

$323,654.40. That’s pretty crazy, right? We thought so. 

Put that into context, and the average Canadian household will spend $80,000 more on investment fees than they’ll spend to raise a child to the age of 18. So it’s not surprising that Canadians feel like no matter how much they try to save, they keep falling further behind their goals.

According to a 2013 study we reviewed by Environics Analytics*, the average Canadian household has $229,000 in liquid assets and, according to Morningstar, the average Canadian mutual fund charges 2.35% annually. Do the math, and after fees are paid by Canadian investors, the amount that saved for retirement is likely far less than what they might anticipate (and in some cases, need).

Do you know what you’re paying in fees?

At Nest Wealth, our goal is to help Canadian investors reach their financial goals, and with CRM2 having kicked off last Friday, the release of our mutual fund fee calculator couldn’t be timelier. It’s the first free fund fee calculator in Canada that allows Canadian investors to instantly (safely, and anonymously) check the fees they are paying on their investments. Many Canadians aren’t aware of how they pay for financial services and might not be aware of how small percentages deducted each and every year from their savings can make a huge difference in the goals they are able to achieve. If you invest in mutual funds and haven’t checked the fees your paying on your investments, you should, and you can do it here.

We think having More Is Better when it comes to your wealth in retirement.

Our More Is Better campaign is also part of our initiative to highlight and promote investment transparency and cost awareness, because we want Canadians to keep more of their own wealth.

If you were to invest with Nest Wealth and pay a flat fee instead of a percentage of assets, chances are you’ll end up with more wealth in retirement, which is what our campaign hashtag – #NestIsMore – is meant to convey. We want Canadians to know it’s possible to retire with more wealth, and Nest Wealth can help them.

The earlier we can help Canadians become informed, the more money we can help Canadian investors save – and that’s really what we’re here for.

* Environics Analytics as of December 2013
1 Click here to view the assumptions and data used in our calculations.

Read our press release here: Next to Buying a Home, Investment Fees can be the Average Canadian Household’s Largest Single Expense.