# Getting out of IG..is it worth paying the DSC?



## thepitchedlink (Feb 17, 2014)

Hello everyone, second post here I think. Mods, please move this to another location if I've not chosen the right forum area.
I have some $ with IG, I'm thinking of moving it out and becoming a couch potato with it. I order to get the $ out, the DSC I'd have to pay will be 4.24% right now. I've not figured out the exact MER for the portfolio...(IG doesn't make it easy), but it's got to be around 2.3-2.4%. SO, is it smart to take the $ out now....or leave it in until the DSC falls to the same as the MER, then take it out. Or, should I move the $ within IG, to a more aggressive fund, it's getting about 5-5.5% right now. As near as I can figure talking with the IG office, moving it will not restart the 7 year trap.
I'm thinking that moving the $ to the more aggressive fund and waiting for the DSC for fall is smarter.....I guess the real question is, how well will that $ do in the "potato"???? How long will it take to recover the $ lost paying the DSC?

Any ideas?

Pitched


----------



## wendi1 (Oct 2, 2013)

An MER is every single year, and a DSC is once (like a bandaid, it might hurt less to get it over with). Is it a lot of money we are talking about?

Couch potato is not a guarantee of short-term success, either, it is just a low cost simple strategy. No one will trot out their crystal ball for you on this one...

I feel your pain... my dad's estate had to pay a DSC on his RRIF, and I'm afraid I was quite rude to the nice financial advisor...


----------



## fraser (May 15, 2010)

Consider yourself fortunate to get out of IG early and to not have had a substantial amount of funds in their program. I know someone who left it a little late and paid dearly. Not only for the exit cost, but for a few years of sub standard performance, and for a few years of having to deal with a person who tried to pass herself off as a knowledgeable financial advisor. 

It it were me, I would cut my losses and RUN.


----------



## Video_Frank (Aug 2, 2013)

From my experiences most people take the DSC hit. It's usually a relief to get away from the MFs and the FA to begin your own self-administered portfolio. I took a hit but I considered it a tax on my own stupidity and I haven't looked back.


----------



## thepitchedlink (Feb 17, 2014)

Forgive my stupidity but when figuring out what a MF costs you per year, is it as simple as "amount in account x MER", and that's what the fund is costing you a year


----------



## thepitchedlink (Feb 17, 2014)

I've been playing with a little "mutual fund calculator" over on "GetSmartAboutMoney" . It gives me a different cost of owning the MF, then just straight "amount X MER". Has anyone used that tool before?, Is it considered accurate? 
thanks


----------



## wendi1 (Oct 2, 2013)

http://www.investorsgroup.com/en/products/invest/unit-trust-funds/ig-agf-global-equity-fund

This is the IG Global Equity Fund. Under the heading "Fund facts" select the type of product you have. The MER is in the upper right quadrant under "Quick Facts". That's the number you want. Hell, they are high - what were you thinking?


----------



## thepitchedlink (Feb 17, 2014)

. Hell, they are high - what were you thinking?[/QUOTE]

Well, life's complicated, it involved a dead parent, an ill parent who couldn't look after $. I needed to get the $ "somewhere" and this is the route we ended up on. Both parents are gone now, the $ has flowed to me....at the time, it worked, and was better then having it sit in a bank account where it could get "spent"....at least it was tied up and working a bit....I'm happy there was some left to come to me, as it could have been quite different. To put it another way, I wasn't thinking...just reacting.

End Rant. just looking for ways to fix it up now


----------



## Video_Frank (Aug 2, 2013)

wendi1 said:


> The MER is in the upper right quadrant under "Quick Facts". That's the number you want.


On page 2 they're higher. Series "A", for example, have a 2.9% MER, 0.06% TER and a .64% trailing fee. That's 3.6% total.


----------



## wendi1 (Oct 2, 2013)

Gah. Right you are, Frank.

Better to own the IG stock than be a customer, I'm thinking...


----------



## warrdogg (Feb 8, 2013)

That's an outrageous DSC rates and duration. I can't believe they are still getting DSC up to 7 years. When I switched to ETFs from MF is wasn't happy I was going to get charged DSC, but like Frank said it was a tax on my own stupidity.


----------



## thepitchedlink (Feb 17, 2014)

YA, It's going to be a tax on my stupidity as well...but better now then later as near as I can figure. I'm going to call the IG head office today and find out the full DSC pain


----------



## richard (Jun 20, 2013)

If you use ETFs and you can make the right decisions without an advisor you'll pay 2-3% less every year. I don't think the DSC falls that fast so it's better to leave now. There is no guarantee that the aggressive fund will perform better.


----------



## Jesse (Jan 21, 2012)

When I was getting out of my DSC mutual funds, I found out that they allow 10% redemption for free each year on the anniversary of the purchase date. Mine was only a couple months away so I waited until then, redeemed what I could for free and paid the DSC on the rest.

In my opinion, the 3% that I had to pay to get my money back in my control was money well spent.


----------



## Four Pillars (Apr 5, 2009)

It's hard to justify paying an extra 2% per year for several years just to save on DSC charges which is unfortunately what a lot of people do because they just can't handle the trauma of paying any DSC fees.

My thoughts and suggestions on how to potentially reduce the fees:

http://www.moneysmartsblog.com/defense-mutual-fund-dsc-fees-investors/


----------



## canucked_up (Feb 23, 2014)

*DSC rate?*

Please excuse my limited knowledge of DSC's and no knowledge of IG, but the rate of 4.24% you quote seems strange. I would expect a less specific number????


----------



## thepitchedlink (Feb 17, 2014)

canucked_up said:


> Please excuse my limited knowledge of DSC's and no knowledge of IG, but the rate of 4.24% you quote seems strange. I would expect a less specific number????


Me too, but when I called them, that is the number they gave....I'm guessing it's calculated daily on their end


----------



## Four Pillars (Apr 5, 2009)

thepitchedlink said:


> Me too, but when I called them, that is the number they gave....I'm guessing it's calculated daily on their end


I'm thinking the 4.24% figure is the percentage of the DSC fees of the entire portfolio. If the units were bought at different times, they could have different fees + the 10% free is there as well.


----------



## thepitchedlink (Feb 17, 2014)

Looks like it's 12% free with IG


----------



## banjopete (Feb 4, 2014)

Sadly speaking from infuriating experience I sucked it up, put down the expensive experience to plain stupidity for not knowing more ahead of time, cut and run. The expense of leaving is a distant memory now but the reward both psychologically and experience wise was worth it many, many times over. It was just a greasy experience dealing with them and I should have known it before I started. Pay the piper and get on with your future finances.


----------



## cardhu (May 26, 2009)

thepitchedlink said:


> Forgive my stupidity but when figuring out what a MF costs you per year, is it as simple as "amount in account x MER", and that's what the fund is costing you a year


Not exactly ... the fund value fluctuates during the year, and the management fee is calculated and drawn from the fund, more frequently than once annually ... so the actual amount that you paid could be slightly higher or lower than what your calculation indicates. 

The common criticism is that MF managers get paid regardless of whether the fund makes money or loses money ... and that is true, but rest assured that they make LESS money when the fund is losing, than they do when the fund is rising ... believe it or not, it IS in the fund manager’s best interest, to produce good results.


----------

