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Thread: Minimizing Fees

  1. #11
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    I don't get the Starbucks analogy. I'd rather save 10 bucks on fees and spend 10 bucks on mindless consumerism than have a final coal institution take my 10 bucks.

    ... But the $10 commission can easily be offset if you have an opportunity to invest in a compounding mechanism that has a lower MER.

    With $100k, I wouldn't be too caught up in commissions. You can own 10 different equities and pay $100 in purchase fees which will amount to 0.1%.

    ... So you would be better off investing in something that performs just 0.2% better over three years and pay the fees.

    Do not prioritize fees as the top selector. Prioritize the investments and then go where you need to make it happen.


  2. #12
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    Btw eclectic12, I would avoid the fee and use the coffee maker too. Your point is taken, in this regard.

    I think what you are saying is that fees on productive assets are less relevant than leaking money with a consumerist lifestyle.

    In retrospect, I completely agree and apologize for countering your point. I'd edit my post but can't on the mobile device I'm using.

  3. #13
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    Quote Originally Posted by TomB19 View Post
    I don't get the Starbucks analogy.
    What analogy?

    This is what my co-workers were *doing*. I watched for three years in disbelief.


    Quote Originally Posted by TomB19 View Post
    ... I'd rather save 10 bucks on fees and spend 10 bucks on mindless consumerism than have a final coal institution take my 10 bucks.
    Really? You'd rather sweat to save $10 a year then blow $3K a year on coffee?

    Never mind that something like $4K of pre-tax income is needed to replace it?


    Interesting ... maybe I should be buying Starbucks stock.


    Quote Originally Posted by TomB19 View Post
    ... But the $10 commission can easily be offset if you have an opportunity to invest in a compounding mechanism that has a lower MER.
    Possibly ... but using the coffee maker would have given them $3K+ a year more to invest ... which I would think is more significant than time spent to save $10 commission.

    Or one could make a minimal effort to go half/half.


    Quote Originally Posted by TomB19 View Post
    ... I think what you are saying is that fees on productive assets are less relevant than leaking money with a consumerist lifestyle.
    I'm saying people should look at the big picture before worrying about what to focus on.

    It seems silly IMO to be worried about that minimal savings while missing that far can be accomplished in other areas.



    Cheers
    Last edited by Eclectic12; 2017-04-11 at 03:39 PM.

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  5. #14
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    Other than Questrade, what other brokerages, do you use?
    Your thoughts on: XUU 30% / XEC 10% / XEF 15% / VSC 5%/ XIC 40%

  6. #15
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    Quote Originally Posted by GalacticPineapple View Post
    Ten dollars is ten dollars. That's $10 you don't have to set your alarm for, commute for, be away from friends and family for, go to bed early for, worry for, pay tax for. In other words I completely disagree with what you're saying.
    I guess -- fees are important obviously, the average MER of my portfolio is 0.15. That contains a fair amount of eseries though so if I wanted to muck around i could probably get it down to 0.1 if I worked at it. Really though, those 0.05% isn't worth the hassle. Some things are work paying for. I'm not going to chase little differences in MER like that. I can use my time better.

  7. #16
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    Quote Originally Posted by mikeyrofl View Post
    Other than Questrade, what other brokerages, do you use?
    I've been using the couch potato strategy for a few years now, here's what I do:

    I use TD Waterhouse and Questrade as my brokerages.

    I have (automatic) biweekly payments set up from my main bank account to TD Waterhouse. I also have a 'Systematic Investment Plan' (SIP) which automatically purchases my eSeries index funds biweekly. My eSeries funds have an average MER of 0.42.

    In my Questrade account I use ETFs (VCE, VFV, etc.) and my average MER is very low - 0.12. I should be shifting funds from TD -> Questrade periodically to reduce my average MER but I typically only do this every few years.

    Looking purely at fees Questrade I think is unbeatable. But for what it's worth I can't stand their web interface and am seriously considering consolidating everything at TD Waterhouse!


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