Author: Bloom Investment Counsel, Inc.

When you first start earning an income, you often wonder what to do with your “newfound” money. You may want to put aside some money for the long-term (i.e. retirement) and also invest a portion of the money in the hopes of growing your savings for more immediate use. , The two most common savings/investment accounts you hear about are Tax-Free Savings Accounts (TFSAs) and Registered Retirement Savings Plans (RRSPs). Two very common questions about these are, “What’s the difference between a TFSA and an RRSP?” and, “Which account is right for me?”.

There are various factors that you should consider when deciding which account is best for you. You need to consider your reasons for saving if you plan to make withdrawals from the account, and your planned contribution amounts.

Historically, the lack of fee transparency in the wealth management industry has been one of the greatest causes of investor discontent.

Investment fees may include any number of costs associated with the use of financial products. They may include costs of an online investment platform, brokerage commissions, transaction fees, administration fees, account fees, and custodian fees.

In the past, these fees were mostly lumped together as one item, possibly labeled simply “investment fee”. With the greater regulatory requirements for fee transparency, investment fees must now be itemized.

It is important that you know what is included in your total investment fee to determine if you are getting value for what you are paying.