{"id":41589,"date":"2018-12-29T11:19:51","date_gmt":"2018-12-29T15:19:51","guid":{"rendered":"https:\/\/challenge-action.com\/reduce-management-costs-and-manage-your-finances\/"},"modified":"2024-10-26T15:19:26","modified_gmt":"2024-10-26T19:19:26","slug":"reduce-management-costs-and-manage-your-finances","status":"publish","type":"post","link":"https:\/\/challenge-action.com\/en\/reduce-management-costs-and-manage-your-finances\/","title":{"rendered":"Reduce management costs and manage your finances"},"content":{"rendered":"\n

The vast majority of savers think that when they place their money with a financial institution, they pay between 2% and 3% in financial management fees. Here’s a look at how much you actually pay and how you can protect yourself.<\/p>\n\n

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Announced and actual gains<\/h2>\n\n

One day I decided to call my advisor at a large local financial institution and ask him why the returns were so low. He told me that it wasn’t ideal because I had conservative investments while the market was doing well, so it was working against me, that I’d still made 3% and that it would go back up. <\/p>\n\n

In short, what you always hear in this case… Fortunately, I’d done the math, i.e. I divided the gains I’d made by the starting amount a year earlier and came up with a rate of 1.2%, even though the market was rising sharply. He replied that it was because he hadn’t included the fees. <\/p>\n\n

This remark gave me the idea of doing a little research on management fees.<\/p>\n\n

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The real rates<\/h2>\n\n

I’m not a financier, so I turned to specialists and did some research on the Internet. Most of the financial advisors I interviewed told me that management fees average between 3% and 4% in Canada. <\/p>\n\n

Of course, this may vary, and you may pay less, depending on your financial institution, the amount you have, and the conditions offered to you. Some specialists estimate that real fees can rise to 5%, so let’s take a look at the composition of these fees.<\/p>\n\n

First of all, the January 1, 2017 Journal La Presse + published an interview with Mr. Raymond Pouliot <\/a>: “But if you add management fees, custody fees and transaction fees, which are always hidden in the return, it can easily rise to 3% or 4%, depending on the asset class.” That’s a lot! <\/p>\n\n

For its part, the Canadian Autorit\u00e9 des march\u00e9s financiers (AMF) recommends checking the investment fund’s overview of fees, which must include :<\/p>\n\n