Investing comes at a cost and that can affect how your portfolio performs. In our final segment, you’ll learn about the various fees at both the account and investment level.
What kinds of fees do you pay when you invest? Understanding fees at the account level is important because fees can directly impact the performance of your portfolio and your ability to save toward your goals.
- A do-it-yourself or online self-directed approach will typically cost less because it doesn’t come with investment advice, financial planning or any help with transactions.
- Robo-advisor portfolios are typically lower cost because they use online platforms and questionnaires to determine the appropriate investment portfolio for you.
- If you prefer to work directly with a professional who will provide advice and recommendations, an advisor-led service is recommended. Naturally, costs will be relatively higher for this choice.
- At the top end of the service spectrum is fully discretionary, personalized investment management, where you delegate your investment decisions.
At the investment level, there are costs associated with professionally managed funds that you may own, typically known as the management expense ratio or MER. It’s important to us at MD Financial Management that you’re comfortable with the fees you pay and that you understand the financial planning services they enable.
For more information about fees or help reviewing your portfolio, get in touch with an MD Advisor*. They will be happy to answer any questions and to tell you more.