I’ve come across many Canadians who don’t think they pay any fees to invest their money. Fortunately, the number of people that are under this impression is falling due to increase exposure. While you might not be swiping your credit card, there are a number of fees that get paid when you invest your money. In this episode of Your Money, Your Choices, I outline some of the harder to see fees associated with investing including:
- Management expenses which are taken off your investment return,
- Trading expenses for mutual fund and ETF providers to buy and sell a basket of securities within one fund,
- The bid-ask spread when you purchase or sell something on an exchange, and
- Taxes on non-registered investment accounts.
It’s important to understand what these fees are, why they are charged, and if you are personally paying them, since it may make an impact on your planning and ongoing investments.
