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01-23-2010, 11:23 PM
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#21
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Recycles dryer sheets
Join Date: Mar 2009
Location: Akron
Posts: 130
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Quote:
Originally Posted by regularguy
So here is what my portofolio looks like right now:
2419 - MANULIFE MONTHLY HIGH INCOME
2468 - MANULIFE FIDELITY CANADIAN BALANCED
2485 - MANULIFE MAWER DIVERSIFIED INVESTMENT
151 - Signature Select Cdn Corp Class
790 - HARBOUR CORPORATE CLASS
429 - IA CLARINGTON DIVIDEND GROWTH FUND SERIES T6
441 - IA CLARINGTON TACTICAL INCOME FUND SERIES T6
What do you guys think?
(I feel bad not asking for advices before buying into these... I will never make the mistake of trusting an 'advisor' 100%)
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I have to qualify this by saying that all Ive done was ...Ive taken those funds, googled them, and came up wth the following expense ratios (MER). Some have load fees, in fact they all may have, but I dont feel like doing the extensive searching for them. Either way, the MER is way too high on every one of them.
MANULIFE MONTHLY HIGH INCOME expense ratio: 2.09% with a 5% load fee.
MANULIFE FIDELITY CANADIAN BALANCED MER 2.09%
MANULIFE MAWER DIVERSIFIED INVESTMENT MER 2.45% Management fee 2%
Signature Select Cdn Corp Class MER 2.31%
HARBOUR CORPORATE CLASS 5% initial, 5% deferred, 2% management fee, 2.35% MER
IA CLARINGTON DIVIDEND GROWTH FUND SERIES T6 MER 2.56%
IA CLARINGTON TACTICAL INCOME FUND SERIES T6 MER 2.4%
I hate to encourage violence, but I hate to see people being taken advantage of, so I wouldnt mind seeing your financial advisor be punched in the face!
Read up all you can about Index funds. Expense ratios generally fall below .4%
GL
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01-23-2010, 11:39 PM
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#22
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Dryer sheet wannabe
Join Date: Jan 2010
Posts: 11
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Oh man... I am not so sure it was a good idea to ask for advices on this forum, I will have trouble sleeping at night from now on! (just joking, thanks alot for helping me opening up my eyes on the situation)
So let's say I want to cash out the investments I made, am I going to loose alot 5% load/deferred fees?
Damn, I should have asked earlier on, I feel really bad right now.
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01-23-2010, 11:43 PM
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#23
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Dryer sheet wannabe
Join Date: Jan 2010
Posts: 11
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Just took a look at my account transaction report and looks like I already spent 4k$ on fees of all kind.
****!
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01-23-2010, 11:57 PM
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#24
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Recycles dryer sheets
Join Date: Mar 2009
Location: Akron
Posts: 130
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Well, the good news is that youre doing way better than everyone else your age, and you realize the importance of saving for the future. So you shouldnt let all this keep you awake at night. Another poster pointed out that weve all made mistakes. This is a learning process, so just keep doing research before making any more moves.
As far as getting back the money, the front end load fees are gone. The MER is an annual percentage of what they are charging you. You can probably get out of any of those funds whenever you want (maybe not the annuity, and this also might incur fees.) but Id just take a step back for now, and do some research on exactly how much $ you want- going into exactly what investments.
Personally, if I were you, Id just do whatever it was to make you that kind of money-for another 5 years, then youre all set.
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01-24-2010, 12:00 AM
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#25
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Dryer sheet wannabe
Join Date: Jan 2010
Posts: 11
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Ok, I will research out I can get out of this mess as soon as possible.
@Mill: Thank you very, very much, you do not know how much I appreciate it!
I will keep you guys updated on what happens...
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01-24-2010, 01:55 AM
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#26
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Recycles dryer sheets
Join Date: Oct 2009
Location: Los Angeles
Posts: 50
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I thought I made a lot at 23, you got me a bit jealous now
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01-24-2010, 02:07 AM
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#27
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Confused about dryer sheets
Join Date: Jan 2010
Location: Seattle
Posts: 4
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Regular guy, I believe you are in Canada. But how about if you are in the US. Municipal bonds are for the most part safe. Secure by the government.
Some of the disadvantage is that:
1. You will not get high returns but for that amount you will get a decent check every month or every six months depending on the bond.
2. You have to stay with the bond for longer period of time, unless you sale the bond.
I am sure the Canadian government has the same since most countries have similar systems.
What you guys think about that thought?
__________________
No beast so fierce but knows some touch of pity, but I know none, therefore am no beast.
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01-24-2010, 02:07 AM
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#28
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Full time employment: Posting here.
Join Date: May 2008
Location: Lexington
Posts: 714
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The income is impressive, and the mistake here isnt all that large. As long as you fix it soon. 4K is a pretty inexpensive introduction to the dark side of the investment world (which are the hordes of crooked salesmen). Many go 5, 10, or even 30 years (such as when they invest in their company plan), and then look at their balances at the end and have no clue what went wrong, they don't even know what happened.
Make sure to find out if there are any termination fees or withdrawal maximums, and then get the money in a money market fund/an insured high interest savings account, and leave it alone until you figure out the sort of funds you need. The salesmen certainly aren't going to hand the right plan (even though there really should be a rule that they be fiduciaries, but there is no such law). I am honestly astonished that a fiduciary responsibility was never mandated in the financial industry, there is just so much incentive to screw a person over when very large sums of money are involved otherwise.
As for RAMBO's question, I think municipal bonds have too much inflation risk, at least if that is all you are going to buy. As a steady, conservative portion of a portfolio, it is worth investigating, among other options.
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01-24-2010, 02:28 AM
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#29
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Confused about dryer sheets
Join Date: Jan 2010
Location: Seattle
Posts: 4
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Plex, I totally agree with you. Inflation could get you with the bonds if you do not develop the plan. But you have to take into account that most municipal bonds are tax exempt and in reality when they tell you the bond is 5%, in reality is the equivalent of making an 7% after tax (approximately). If you want to live a humble live this could be a good route. What I am doing is reinvesting my gain until my retirement.
The wrong thing to do with such of young age, in my opinion, is to expend your gain right away.
If you want a glamorous lifestyle, this is not the route.
__________________
No beast so fierce but knows some touch of pity, but I know none, therefore am no beast.
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01-24-2010, 08:48 AM
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#30
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Moderator
Join Date: Sep 2006
Posts: 4,029
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Quote:
Originally Posted by regularguy
Thanks alot for your serious awnsers guys, much appreciated.
I am reading investopedia on a daily basis, any other sites that provide good info and tips? (Thanks alot for the bogleheads link)
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Definitely agree with reading some good books (there is a link on the forum for recommended reading list). If you are looking for online education, IMO, this is a very good place to start:
Investment Guide
Good luck to you and as others have said, just be glad you are getting your education young which will limit your overall losses!
__________________
simple girl
less stuff, more time
(55, married; Mr. Simple Girl, 59. FIRED 12/31/19!)
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01-25-2010, 05:28 AM
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#31
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Recycles dryer sheets
Join Date: Aug 2008
Posts: 388
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Quote:
Originally Posted by plex
As for RAMBO's question, I think municipal bonds have too much inflation risk, at least if that is all you are going to buy.
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Too much default risk right now, I think.
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02-05-2010, 02:44 PM
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#32
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Full time employment: Posting here.
Join Date: Nov 2009
Location: VA
Posts: 923
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What kind of adviser would put a 21 year old with 30% of his money into that? Didn't you have to complete a suitability form? I hear FINRA calling...if you're still within your 30-day or 60-day free look period, you can still get it back with no penalties.
5% guaranteed for an income rider is nothing. Every company that has income riders has 5%+. Make sure you understand the difference between an income rider and a guaranteed cash accumulation. There are many fixed/index annuities that charge no wrap/account/management annual fees offering 7-8% guaranteed.
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02-10-2010, 10:29 AM
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#33
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2006
Posts: 12,483
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Quote:
Originally Posted by dgoldenz
What kind of adviser would put a 21 year old with 30% of his money into that? Didn't you have to complete a suitability form? I hear FINRA calling...if you're still within your 30-day or 60-day free look period, you can still get it back with no penalties.
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I don't think FINRA regulation applies in Canada..........
Quote:
5% guaranteed for an income rider is nothing. Every company that has income riders has 5%+. Make sure you understand the difference between an income rider and a guaranteed cash accumulation. There are many fixed/index annuities that charge no wrap/account/management annual fees offering 7-8% guaranteed.
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With the corresponding 15 year surrender periods?
__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)
This Thread is USELESS without pics.........:)
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02-10-2010, 10:40 AM
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#34
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Full time employment: Posting here.
Join Date: Nov 2009
Location: VA
Posts: 923
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Quote:
Originally Posted by FinanceDude
I don't think FINRA regulation applies in Canada..........
With the corresponding 15 year surrender periods?
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Didn't know he was in Canada. Still shady...and income annuities don't all have 15 year surrender periods, I'm sure you are referring to the infamous Allianz policies that were sold to unknowing people and had surrender periods longer than the accumulation periods unless you actually annuitized. The only annuities we offer are those with surrender periods equaling the term selected for accumulation purposes (i.e. a walk-away annuity). There are shady and abusive agents/advisors everywhere in every industry only out to line their own pockets, but that doesn't mean every one of them is that way. As they say "trust, but verify."
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02-10-2010, 11:17 AM
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#35
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2003
Posts: 18,085
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Better yet: "be suspicious and avoid entirely."
__________________
"All animals are equal, but some animals are more equal than others."
- George Orwell
Ezekiel 23:20
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02-11-2010, 11:51 AM
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#36
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2006
Location: Pacific latitude 20/49
Posts: 7,677
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RegularGuy
Because you are in Canada, the land of high MERs and grasping FIs, I think you ought to visit
Financial Webring
and especially visit their forum. The advice you received here is consistent with what you will find there but the focus is on Canada. Vanguard is not available to us. Even our ETFs cost more.
(I invested in a good segregated fund at Maritime Life but through two acquisitions, it is now a part of Industrial Alliance and all my fund choices now have high MERs.)
__________________
For the fun of it...Keith
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02-12-2010, 02:12 PM
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#37
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Recycles dryer sheets
Join Date: Jun 2008
Location: Rochester
Posts: 84
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I have about 50% of my IRA in VFORX. You can find the fund that matches 2050 since you are about 10 years younger than me. Picking some up every month for a year or two as part of your strategy can't go too wrong over the long haul. It's always good to keep some cash on hand too for when bargains come up. Keep a list of solid companies to watch and pick them up when they take a 5-10% beating.
-Raymond
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