RRSPs--waaaay under water.

[OhGreatGuru]

From a rough calculation your current Internal Rate of Return (IRR) is about -2.34%. That could be good, bad, or indifferent because your annual contribution rates have been highly variable amounts. I was hoping to make a quick comparison to how a typical CDN balanced fund would have returned with that stream of payments, but Globefund doesn't seem to have unit prices going back as far as 1994.

[Four Pillars]

we've already discussed how the TSX is not an accurate benchmark but I just wanted to add the Canuck dollar has been raging for a long time. As a smart, reasonable person who diversifies around the world, I've watched my international holdings lag Canadian equities in a big way!!

Last year I think the Canuck buck appreciated around 15% over the US$. Even Buffet can't compete with that...

My point is that your returns might not be as bad as you thought...

Some great suggestions in other posts about what to do now.

I suggest that you dump your "guy" and go it alone. But come up with a plan first.

[high octane]

I suggest that you dump your "guy" and go it alone. But come up with a plan first.

x2

The high mutual fund MERs only drag down the return and you pay it every single year rain or shine

IMO people should get out of mutual funds once they hit $25k

Paying the % based fees makes sense when your portfolio is small, but once it's big enough you're much better off paying 1 time commissions and lower MERs on ETFs

You don't need a guy to buy ETFs

[houska]

Based on what you're saying, your "guy" hasn't delivered performance, doesn't appear to have invested your money in a cost effective manner (fairly high fees), doesn't appear to have communicated terribly well with you - and doesn't seem to have really sat down and developed an investment strategy with you either. It sounds as if you've really only had very transactional type discussions - where to put more money, whether to sell something or not.

All of these seem like strikes against "your guy". Now, you've entered a pub (=Canadian Money Forum) where most of the regulars manage their own money, have strategies, and keep costs low. (I'm not sure about the performance ). So of course we're recommending to ditch "your guy". That might or might not be the right answer.

You definitely need to become a more informed "investment shopper". Start off by talking with your "guy", not about performance but about investment strategy. See what he says: maybe he's been burning to have that discussion with you but you've together always turned transactional. Don't sign for more stuff, but get informed.

Take advantage of "second opinion" consultations from other financial institutions. See what they say about investment strategy and quiz them about fees. Again, you don't have to go with them, just learn.

Read on the internet. The regulars here will point you in the right direction for self-directed low cost index investment approaches in particular.

Then decide what to do. Dump "your guy" and go it alone. Or go with someone else whose costs are transparent to you and whose communication style works for you. Or keep "your guy" if - unexpectedly - it becomes the right thing.

And perfectly fine to keep your money parked in cash while you figure it out.

[ashby corner]

bang, right on the head.

the discussions have always been transactional, never strategy or goals. What a great way to put it.

[Jungle]

Second, after you've decided on an asset allocation, choose the lowest-cost investments possible. One of the few certainties in investing is that higher cost leads to lower returns. You can choose broad-based ETFs or index funds in place of mutual funds. One disadvantage of ETFs is that a stock commission is needed to purchase them. Many of the big banks (TD for sure) have index funds that automatically re-invest dividends. That way you can still invest monthly without worrying about commissions. If you have ~ $100,000 portfolio, then your cost (MER) is ~ $2,500 (2.5%). If you use ETFs and index funds then your cost should be < 0.5% ($500 per year). Just lowering costs gives you ~ $2,000 more per year working for you. Some ETFs to consider are XIU (60 stocks from the S&P60, MER 0.17%) and XSB (combination gov't and corporate Canadian 1-5 year bonds, MER 0.25%). The costs of mutual funds are much higher than people think. The rule of thumb I'm familiar with states that each 1% of MER over 20 years costs ~ 20% of your capital (when compared to capital accrued without the same expense).

If it makes you feel better, don't forget that you've saved tens of thousands of dollars in taxes with your contributions. Good luck with your future investments!

Claymore ETF have DRIPs for all ETF's traded on the TSX. You can save money this way by having no trading fees! Add this with a no fee RRSP brokerage account.

Also, TD has their "e-series" mutual funds, which have MER's well under 0.31%-0.48%. In addition, there are no trading or admin fees! (Just sign up for e-statements and the fees are waived).

These two options can save you some money. Set it up with a couch potato portfolio, sit back and relax.

Claymore ETFs:
http://www.claymoreinvestments.ca/et...ment-services/

TD e series:
http://www.tdcanadatrust.com/mutualf...unds/index.jsp

[Berubeland]

You may also want to check out some investment books. There is a list somewhere of recommended books from other posters on this forum.

It's just an observation by observing and interacting with the other posters here but it seems like everyone has their own idea about investments and a type of investment they like and learn about and do well with. Some people like dividend stocks, other people want growth stocks, mining stocks and everything in between. The important thing really is that you have to be comfortable with what you choose and sleep well at night as your money grows.

Also you can go to www.wallstreetsurvivor.com and set up a virtual portfolio before you set out with real money. This way you can test the waters a little and test out different strategies.

I had an idea one time to buy only the highest dividend paying stock and see how they would perform. That particular virtual portfolio is down 30%. Thank god I didn't use real money with this plan.

[Robillard]

Do we have a discussion on developing investment policy statements and assessing personal risk tolerance yet? That would be a good follow up to this discussion.

[bean438]

You might also want to check out ING mutual funds:

http://www.ingdirect.ca/en/save-inve...nds/index.html

With a 1% MER I am sure some here will say it is too high a fee, but still lower than what you were paying, and it is truly a hands off investing method. No rebalancing, just set it up and forget it.

ING has 2 other funds, a balanced income, and balanced growth fund, but I cant find any info on those funds.

As for books i recommend "The Single Best Investment" by Lowell Miller. This book outlines a dividend growth investment strategy, which in my opinion is the only way to go if you decide to purchase individual stocks.
I also recommend "The INvestment Zoo" by Stephen Jarislosky. Canadian oriented, with lots of good advice. PLus he is a billionaire and I am not so I tend to listen to what he has to say.

I also recommend you check out Berkshire Hathaway's web page and read all of the annual reports. Tons of good reading.

No matter what you decide to do, just pick something that you are comfortable with and STICK with it. Everything works, but not everything works all the time.
Even Buffet during the "this time it really IS different, the internet is gonna change the world forever, so just buy anything with .com in the name and you will be a kazillionaire" made the cover of Time Magazine that proclaimed "what's wrong Warren?"
Value investing was extremely out of vogue. Warren stuck to what he knows, and does best and was eventually rewarded.
I suspect "your guy" may have tried to chase the latest greatest trends and fads.
The only thing worse than market timing is mutual fund performance chasing.

[Square Root]

I made a single RSP contribution in early 1995 of $34,000 no withdrawals and no further contributions (big pension adj). It is now worth $122,000. Various stocks over the years-mostly banks some bond funds. IRR is about 9.3% divs included of course- not sure how this compares with any average, but I'm happy. Returns would have been double that if I had just .gone 100% bank stock (say TD or RY). Not sure why people don't just pick a few blue chip dividend payors and forget about it? Don't need an advisor or mutual fund for that. Now it was a little scary this time last year but didn't panic.