Personal Finance

debt reduction or retirement investing help

  • Last Updated:
  • Dec 12th, 2017 8:49 pm
[OP]
Newbie
Dec 11, 2017
1 posts

debt reduction or retirement investing help

hello rfd

my wife and i are are looking ahead to retirement goals after meeting with a primerica rep

here is our situation
both 30 years old 2 young kids (3,4)
income 130K per year
debt 280k for a home
equity 140k in our house
putting money into a savings account each month
putting money into a child educations savings account ( rbc bank)
10K cash we would like to invest to start with

we are looking for opinions on where we should invent our money for retirement, should we stick with our bank (rbc) or go with a company like permerica thank you for your help
4 replies
Deal Addict
May 31, 2007
4996 posts
2116 upvotes
hofffy wrote: hello rfd

my wife and i are are looking ahead to retirement goals after meeting with a primerica rep

here is our situation
both 30 years old 2 young kids (3,4)
income 130K per year
debt 280k for a home
equity 140k in our house
putting money into a savings account each month
putting money into a child educations savings account ( rbc bank)
10K cash we would like to invest to start with

we are looking for opinions on where we should invent our money for retirement, should we stick with our bank (rbc) or go with a company like permerica thank you for your help
No please don't go with permerica , Read here, I don't know hot to describe them without being nice, they seem like a ponzi scheme with their sales tactic and high cost mutual funds that lock you in and underperform.

https://forums.redflagdeals.com/primerica-2074013/
https://forums.redflagdeals.com/merged- ... am-327961/


What you want is FEE only financial advisor, as at your age and timeline you should be investing your money in a low fee, balanced portfolio. Over the last 20 years a balanced portfolio of low cost ETF like couch potato investing has almost quadrupled. However most people don't even achieve this because of bad behaviour, bad mutual funds and timing the markets.

I do not suggest or advise people to "do it themselves" anymore after seeing so many people make big mistakes with DIY investing and essentially blow up their accounts.

Here is a " fee only " advisor that may help, but you can google there are more than one. Call and ask if they can make a plan ,you can think about it with your wife and decide. Cost is small and value is huge.

http://canadiancouchpotato.com/find-an-advisor/
Member
Apr 28, 2014
226 posts
93 upvotes
Waterloo, ON
Jungle, is this person going to be able to find a fee-based advisor who will take him on with his family's level of assets?

Are you (or anyone else- I'm curious about them) using PWL? The link you posted says they require a minimum of $500,000 family assets under management.

Good advice on Primerica- I have never interacted with them, but know people who have, and the advice is to stay away. But I really am curious about fee-based advisors; I thought, for those starting out, they were not an option for a long while, and DIY was it.
Sr. Member
Jun 10, 2013
588 posts
255 upvotes
I've always thought of Primerica as a scam prima facie but I haven't looked too much into it.

Money is best managed on your own or at least with an advisor who can consult and doesn't have access to your money lol. No one is going to care more about your money than you.

If you're sketched out, you can open an TFSA at RBC, I think they have a 9.99 commission on ETF purchases (I personally think this is expensive as I buy for free). You can open your RESP there as well for your kid (not in the bank but in the discount brokerage arm). I think it's called RBC Investing Direct? Arrange it through your bank: https://www.rbcdirectinvesting.com/

I'm not a professional though, just take this as a piece of info. Jungle above has good advice. I'm an example of someone that blew out their accounts when younger. You probably won't make the same mistake, just...don't get too interest in this shit. Just buy your ETFs that the couch potato calls for and leave it - risk allocation entirely dependent upon you:

http://canadiancouchpotato.com/wp-conte ... s-2016.pdf

If you don't want to pay any commissions or fees you can look into TD eFund series (option 2 of couch potato) or Questrade. I personally have my TFSA/RRSP/RESP at Questrade, I like it, but research around.
Sr. Member
Jun 10, 2013
588 posts
255 upvotes
Here's a link to the eFund portfolio: http://canadiancouchpotato.com/wp-conte ... s-2016.pdf

You won't damage yourself too badly with a couch potato, at least not more than most people who are using it. I did some pretty stupid shit when I was younger, a couch potato would have meant the difference between early retirement (now in early 30s) and not...

You choose your risk allocation by the standard deviation or maximum drawdown tolerance based on those PDFs. Anyway couch potato is the laziest and easiest ways to invest and beating out maybe 80-95% of the investing market.

Do not let anyone else handle your money...and if you do, make sure you look at management fees/management expense ratios, you never want them above 0.20% for a plain vanilla portfolio (though TD eFunds is unfortunately more than this, you get the big name backing and no commissions when you buy every month). Questrade doesn't have it either but not sure your comfort level of putting money in a non-bank entity.

I'm glad you were able to avoid the heritage/universitas/canadian scholarship fund group RESPs - those things would have MURDERED you. They're usually sold by very incentivized salesmen - if anyone tries to sell you a financial product. Run. It can be had for very cheap or nearly free (same performance or better).

Top

Thread Information

There is currently 1 user viewing this thread. (0 members and 1 guest)