Canadian's pay highest investment MER's in the developed world.

[KingstonU]

I'm 24 and about to take the dive into seriously investing my money for my retirement. I'm just starting to learn about RRSP's and GIC's and Mutual Funds etc. and it's all a bit intimidating, especially considering these choices will likely have the biggest impact on my life's finances.

I'm just reading up on Mutual Funds from various banks here and I keep coming across articles like this that show that we pay the highest Management Expense Ratios (MERs) than any other developed country. More of our money goes to trailer fees, management fees and marketing expenses etc...

This is depressing and discouraging.

I know there is no quick solution to investing, but would anyone have any advice on where I can read up on long term investing specifically for Canadians? I would also appreciate advice in general on the topic.

Thanks

 

[speg]

Start with a TFSA if you haven't already. Self directed not one of those lame pre-packaged ones from your bank.

You will soon find out mutual funds are a joke. If you want a basket of things you can use an ETF.

I picked up a "investing for canadians for dummies" way back when I first started, and I always find they provide a good quick intro of the basics on whatever topic.

Investopedia is a great site, check it out.

"Rich Dad, Poor Dad" is my #1 book recommendation for people who need to learn why they should be investing.

 

[silverpig]

If you're in it for the long term, then yes a TFSA is a good idea. You should also looking at buying a very simple stock portfolio as stocks perform well over the long run. No need to get fancy with it, just buy the S&P500 or DJIA. If you want to get a little more fancy, you can buy an assortment of exchanges around the world, not just limiting yourself to American stocks.

 

[iGas]

Max out Tax Free Saving Account (TFSA) is a good idea before RRSP, because it protect you from tax at retirement.

TFSA is a better investment because you can take it all out to put toward a down payment for a house with no penalty. RRSP in the other hand have a maximum borrow of $20,000 under the Home Buyer Plan, and you have ex mount of years (I think 5 years) to pay back the borrowed amount other wise there will be a tax penalty.

I would look toward high risk or medium risk type portfolio in TFSA at your age, because you have time to recover if there is discrepancy in the market, and the bonus is that all capital gain is exempt from tax.

In the mean time put your money in some safe investment strategy while you do your research, and you can move your portfolio into more aggressive investment once you have more in depth knowledge.

PS. It is a good idea to see a broker or your bank investment manager for investment strategies.

 

[iGas]

If you're in it for the long term, then yes a TFSA is a good idea. You should also looking at buying a very simple stock portfolio as stocks perform well over the long run. No need to get fancy with it, just buy the S&P500 or DJIA. If you want to get a little more fancy, you can buy an assortment of exchanges around the world, not just limiting yourself to American stocks.

What you mean by long term?

1 month, 3 months, 12 months, years?

You can buy GIC, government bonds, corporate bonds, trusts, as well as stocks, options, and hedge funds in TFSA.