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I am a younger Canadian and want to put more thought into investing, and investing in Canada. What would you recommend? (programming.dev)

submitted 2 weeks ago by [email protected] to c/[email protected]

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From my reading so far I'm looking at ETFs with WS, and that I should start with the TFSA. Am I on the right track and what do you recommend?

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[–] [email protected] -1 points 2 weeks ago (1 children)

I understand your point. But whether it's at a bank or not it's still the same thing. And it would be stupid for a bank to promote and sell investments that purposefully underperform just to take brokerage fees where the customer ends up losing more money if fees than anything. You'd end up with a class action lawsuit pretty quick.

Both my parents have worked in financial institutions initially as advisors and eventually became certified financial planners. I grew up learning about all the different investments the banks offered and the responsibility they had towards their customers. They wouldn't pull this kind of crap and always had their customers best interest at heart.

However, my mother did work dor a while in an insurance company as a quality assurance monitor on sales calls for insurance policies. The shit the advisors there would pull was stunning. Now THOSE guys were leeches. Selling resellable insurance plans that would cost the customer so much only to find out they were ineligible in the first place and things like that.

[–] [email protected] 1 points 2 weeks ago (1 children)

No, a mutual fund with 1-2% MER is not the same as an ETF with 0.25% MER. One of them steals half your money while the other does not.

it would be stupid for a bank to promote and sell investments that purposefully underperform

Nobody said purposefully. It doesn’t need to be purposeful for the stats to play out returns are lower for active management.
I just explained how there are literally massive financial advantages to them selling these funds.

Believe it or not it is very financially lucrative to drain up to half of people’s retirement funds while disguising it under opaque language they know people won’t understand (like MER, brokerage fees) while “”justifying”” their fees with hopes that they would outperform the market (which they don’t).

Sorry to break it to you but your parents were raised in a world where we had less data on these things. We now know their work over the years drained people of their money and siphoned it up to banks.

They didn’t need to be conscious of it for that to be the effect. That’s simply what happens. And because these are risk adjusted opportunity costs people don’t know better.

Moreover your parents worked in a market when 0.25% MER All in One ETFs didn’t exist. So it’s a moot point.

[–] [email protected] 1 points 2 weeks ago

Ok well I'm afraid we're going to have to disagree here.

In any case, I appreciate you taking the time to reply to me and explain your point of view.