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Investors Group Canada TFSA and RRSP

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Newbie
Jun 8, 2012
16 posts
BELLEVILLE

Investors Group Canada TFSA and RRSP

I am wondering if I should start a TFSA and RRSP with Investors Group.

I spoke with a consultant there and they are telling me that I could make 6-11 percent interest annually on my investments with them whereas with the bank, you would make only about 2 percent interest. First of all, is this true? I sort of find it hard to believe personally but then again, what do I know? Secondly, would you recommend investing your money in IG Canada in general?
12 replies
Newbie
Aug 23, 2012
97 posts
people's trust are paying 3% tfsa. you can transfer in and out for free.
Banned
Feb 17, 2007
3190 posts
203 upvotes
pushit wrote: I am wondering if I should start a TFSA and RRSP with Investors Group.

I spoke with a consultant there and they are telling me that I could make 6-11 percent interest annually on my investments with them whereas with the bank, you would make only about 2 percent interest. First of all, is this true? I sort of find it hard to believe personally but then again, what do I know? Secondly, would you recommend investing your money in IG Canada in general?
Avoid them, you will be better off in the long run.
Deal Addict
Aug 13, 2008
3401 posts
426 upvotes
Mississauga
a TFSA/RRSP is meaningless without knowing what you are holding within them sir.

your TFSA/RRSP can hold any type of investment, and that investment could perform great, or could lose money.

i started off simple with ING's streetwise funds. now i'm slowly transitioning to TD e-series. these are index funds that I held within a TFSA. didn't get a 6% return, but it was the simplest form of investment that got me started atleast.
Deal Fanatic
Jul 1, 2007
8569 posts
1763 upvotes
Any "advisor" anywhere who sells his/her services on the basis of future returns is not worth 2 seconds of your time. That particular IG advisor doesn't do anything more or better than an advisor anywhere else. Your bank also has advisors who can recommend investment vehicles that may yield better returns than savings accounts and GICs.
Money Smarts Blog wrote: I agree with the previous posters, especially Thalo. {And} Thalo's advice is spot on.
Deal Expert
User avatar
Dec 11, 2005
20136 posts
2964 upvotes
wesboag wrote: That's an old article and has many writer biases. The author runs an advisory firm with fees higher than IG's, much much higher after you factor in his 1-2% advisory fees and trading commissions above MER's. Never the less, IG dropped most of their fund fees by 50bps about 6 months ago, putting them cheaper than 75% of managed funds out there. With their j series funds, they are amoung some of the lowest of active funds around besides rbc's fund shelf of actively managed funds.

In terms of MER's this argument is no longer relevant.
High MERs was only 1 of his 5 arguments. What about the other 4? Also - the article says it was updated in September, doesn't seem that old to me. Are you saying it is not already taking this 50 point drop into account?
To be nobody but yourself - in a world which is doing its best, night and day, to make you everybody else - means to fight the hardest battle which any human being can fight; and never stop fighting. -- E. E. Cummings
Member
May 2, 2012
291 posts
260 upvotes
Ottawa
wesboag wrote: That's an old article and has many writer biases. The author runs an advisory firm with fees higher than IG's, much much higher after you factor in his 1-2% advisory fees and trading commissions above MER's. Never the less, IG dropped most of their fund fees by 50bps about 6 months ago, putting them cheaper than 75% of managed funds out there. With their j series funds, they are amoung some of the lowest of active funds around besides rbc's fund shelf of actively managed funds.

In terms of MER's this argument is no longer relevant.
Wesboag,

I get the impression from a few of your posts that you are or have been affiliated with IG. Is that the case?

I am absolutely certain there are some ethical advisors working for IG. I frequently advise people to avoid IG in general, however, because I get the impression their corporate culture is one of a marketing company that attempts to maximize their profits, not look out for their clients' best interests.

I'd like to know what the "average IG client" is being advised to invest in. Are they being counselled to use leverage? Are most of the funds they're being sold wrapped with a DSC or front end load?

At a day-long "financial planning" session I attended hosted by IG for my employer, there was discussion of leverage as well as products like whole-life insurance. Admittedly, there was some good advice but I still left feeling like I should check my wallet at the end of the day.

I'm not trying to "poke you in the chest"; all of the above questions are being asked genuinely and honestly and I'm willing to change my mind about IG if I'm presented with new information.
Member
May 2, 2012
291 posts
260 upvotes
Ottawa
No need to apologize. Thanks for taking the time to respond, Wesboag.
Deal Fanatic
Jul 23, 2007
5134 posts
4928 upvotes
pushit wrote: I am wondering if I should start a TFSA and RRSP with Investors Group.

I spoke with a consultant there and they are telling me that I could make 6-11 percent interest annually on my investments with them whereas with the bank, you would make only about 2 percent interest. First of all, is this true? I sort of find it hard to believe personally but then again, what do I know? Secondly, would you recommend investing your money in IG Canada in general?
I would think the consultant mean't 6-11 percent annual returns in a diversified portfolio over the long term. That's like looking at the past. Moving forward into the future, nobody knows what returns are going to be.

You might want to verify the ten years of returns from IG versus a live index with TD e-Series funds using the filter at globefund.

The returns I show are the best ten year returns from the mutual funds offered at Investors Group versus TD e-Series index funds.

Canadian Bond

Investors Canadian Bond 4.35%

TD Canadian Bond Index-e 5.39%

------------------

Canadian Equity

IG FI Canadian Equity Class A 7.41%

TD Canadian Index-e 8.91%

------------------

U.S Equity

IG AGF U.S. Growth Class A 1.09%

TD U.S. Index-e 1.48%

-------------------

International Equity

IG Templeton International Equity - C 1.72%

TD International Index-e 3.15%
Newbie
Feb 25, 2015
1 posts
Westmount, QC
My personal experience with IG wasn't bad but it certainly wasn't a good one either.

Fees are simply too high regardless of the portfolio size. An average MER of 2.25% for clients with 250k or less and 1.25% for anyone above 250k isn't fairly representing the client's best interest IMO.

Through 10 years with IG we accumulated approximately 150k with an average MER 2.79% with a total return or 6% in the end. Since on our own over the course of 4.5 years we've grown our portfolio to 600k with an average return of 18% per year with a yearly trading cost of 0.3%.

Now I know that my performances don't reflect most people's realistic expectations as it shouldn't but one would hope to find a reasonable balance between the two extremes. Several friends and business associates I know have high net worth portfolios. Not having the time to self direct their investments they're managed through various wealth management firms and big banks. None of them pay more than 1% and they all average 8% returns within the last 5 years. Still not for me as I need to have total control of my investments and thankfully I have time. However the average Joe should have the right to decent investment returns at a competitive cost/fee.

There are bad apples everywhere and in every business. However we live in a Buyer Beware world and if you don't ask hard questions and if you're not diligent enough then you'll most probably be taken advantage of. Just my opinion Folks and good luck.
Member
Aug 20, 2014
226 posts
89 upvotes
Toronto, ON
SCEES8 wrote: people's trust are paying 3% tfsa. you can transfer in and out for free.
Scaled down to 2.5% now. Link
Newbie
Nov 6, 2014
77 posts
20 upvotes
Wesboag thanks for your helpful post.

The biggest complaint I've heard about IG is dsc's. I would never buy a fund with dsc. Clients may be told about dsc when they buy the funds however are they really aware of the long-term ramifications? It's doubtful.

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