Three strategies to increase after tax investment returns

Three strategies to improve after tax investment returns

Michael Fine

October 15, 2018

Disclaimer

? The Ottawa Branch of the National Association of Federal Retirees and the facilitator of this Workshop do not in any way offer financial or investing advice.

? This workshop and the information in this PowerPoint presentation are provided for education purposes only.

? Investing involves risk. Any personal investing decisions should be made only after individual due diligence and/or with the assistance of a registered financial adviser or broker.

? Ottawa Branch takes no responsibility for any investment decisions that participants may make.

? By attending this workshop, you are signifying that you understand and agree to these conditions.

Please note that the Ottawa Branch provides information on issues, products and services of general interest to its membership. It does not endorse a particular position on a product or service, as being suitable for individual members, but brings them to the members' attention so that they can make up their own minds

These three strategies will help make you a more successful investor

? 1. Keep investing fees to the minimum necessary ? 2. Minimize taxes through tax optimization ? 3. Diversify both assets and geography

Strategy 1 Keep fees to the minimum necessary

? 2% a year fees can reduce your gains by up to 44% over 20 years

? Canada has some of the highest mutual fund fees in the world

? Despite this, 92%+ of Canadian managed mutual funds underperform the markets

? Exchange Traded Funds (ETFs) charge fees as low as .05%

? No Fiduciary Responsibility unless specifically stated in writing

How 2% fees erode your gains over time

After 10 years, you could have 20% more, after 20, 44%

Returns 20 Years

Index7%

Index9%

7%-2%

9%-2%

600

560

500

514

472

433

400

397

387

364

362

334

338

300 200 100

10795

1111490

111231306

111342112

111452048

168 150 134

183 161 141

199

172 148

217 184 155

237 197 163

258 210 171

281 225 180

307 241 189

258 198

276 208

295 218

316 229

241

253

265

$ 000S

0

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

YEARS

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