Rates dropping April 18/19 | Page 3 | Hubert Financial | Discussion forum

Doug said

Yeah, I'm not sure how the "refund life annuity" works, but I agree that if you're a person who wants a guarantee of not running out of money while alive, then this option is a good one as at least there's no upfront or deferred sales commissions that are so common in the annuity sales industry.

You can, I see, transfer out your funds between the ages of 55-71 (inclusive) into a LIRA (provincial version of the Locked-in RRSP, which is for federal pension legislation). If you don't transfer it out by age 71, though, it looks like you have to take a life only or refund life annuity, right?

The management fees would still make it cheaper than the Tangerine investment funds (at 1.07% versus 0.89% for SPP) or the CIBC index funds offered to Simplii Financial customers (1.12% versus 0.89% for SPP), so on that basis, the SPP is more attractive, with the important caveat that the SPP uses actively managed funds that rely on the fund manager to consistently meet or, ideally, beat, the broader market.

It's a good option, though, and certainly I'd put it right up there with the single-ticket ETFs, with Tangerine's and CIBC's index funds, with TD's e-Series index funds, and with robo-advisors.

Certainly no reason to stick with high MER mutual funds from the major banks and investment dealers.
Thanks, Briguy!

Cheers,
Doug

P.S. I wonder if they will rebate transfer out fees (like many investment firms) if you opt to transfer in the $10,000 allowed per year?  

You forgot Mawer 104 Balanced Fund 🙂 ( 0.91% management fee )

Doug said
Oh, you mean for comparison purposes? Is it actively- or passively-managed? Either way, I wasn't aware of it. Thanks for adding it, Briguy!

The rebranded Questwealth Portfolios is now the cheapest robo-advisor at ~0.25% management fees such that with the underlying MERs, you're basically paying TD e-Series level MER with the added benefit of discretionary portfolio management, tax loss harvesting, and financial counselling.

Hopefully Peter can refer to post # 40 and split off posts # 36 onwards in accordance with the suggestions at post # 40.

Cheers,
Doug  

Mawer is actively managed, one of the highest regarded low fee mutual funds you can buy.
https://www.moneysense.ca/save/investing/how-the-best-balanced-funds-are-riding-the-bear-market/