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The Real Retirement: Why You Could Be Better Off Than You Think, and How to Make That Happen by Bill Morneau, Fred Vettese

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14

Managing Your Portfolio

Depending on the assets you have in your RRSP, you will have a number of options for managing your investments. If you have less than $500,000, you will probably invest in mutual funds or in ETFs (see investment terms just below). If your assets exceed $500,000, you can gain access to the full services of an investment-counselling firm, which can offer you pooled funds at much lower ongoing management fees than mutual funds. The investment-counselling firm will also help you to establish your asset mix at no extra charge. If you are lucky enough to build your assets up to the $2 million range, the investment-counselling firm may offer more services within the same fee envelope, such as estate planning and cash flow management. These thresholds are approximate and will vary from one investment firm to another.

In some cases, your employer will give you the option of putting your personal RRSP monies in the same investment vehicles that are offered under the employer's defined contribution pension plan or group RRSP. If so, you should seriously consider exercising that option. The investment fees will almost certainly be much lower than what you are paying in a mutual fund which means your investment returns after fees should outperform mutual fund returns. Nevertheless, take a close look at the fees and the choice of investment options before committing yourself.

If you have less than $500,000 in an RRSP and you are not a sophisticated investor, you can ...

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