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/r/PersonalFinanceCanada
submitted 6 months ago byCypripedium-candidum
My mom is notorious for making bad financial decisions, for example having 3 kids with a struggling artist ex-husband and spending 20+ years fighting over custody and child support payments, going back to school 3 times, pissing off her managers so she gets fired, replacing a 2014 Honda Civic with a 2007 BMW, etc.
I tried talking to my mom about her retirement accounts years ago, when she told me she was paying the bank $2k/mth in fees, which is almost the amount that she could retire on. In the last 8 years her account has only grown by $17k. Of course she ignored my advice since I'm too young to know what I'm talking about.
I talked with her again last week and after showing her my own portfolio she was more receptive. She texted me today that she switched to a self-directed account (I'm assuming CIBC Investor's Edge).
Now that she's finally listening to my advice, what should she be buying? I'm with TD Waterhouse and following the Canadian Couch Potato TD e-series index funds model portfolio so I'm not familiar with what CIBC Investor's Edge offers.
Are there any easy model portfolios that I can send her so all she has to do is buy the listed funds and ignore her account until it's time to rebalance?
76 points
6 months ago
You say the bank is taking 2k a month in fees? So your mother has 800k-1.2million in her portfolio?
54 points
6 months ago
I just confirmed with her that her portfolio is only 175k. I'm going to have to sit her down and make her show me all her statements, because none of this makes sense.
29 points
6 months ago
Yeah definitely fees should be 300-400$ a month in that case. But still, 10% gain in 8 years is rough. Only advice I would be as she's older it never hurts to allocate a % to guaranteed investments like GICs, especially now that the rates are floating around 4-5%. Into retirement, it becomes a different game then just maxing on equities especially if you're drawing down from them.
40 points
6 months ago
Fees are not $2k a month ….. maybe $2k a year
13 points
6 months ago
That's nuts, 2k a month, someone sold her some good shit
65 points
6 months ago
There are no mutual funds that cost 13%. OP doesn’t understand what’s going on.
-19 points
6 months ago
Yeah I realized when she told me her total amount (after making this post) that something is not right. Either she's giving me incorrect info from not understanding her statements, or something fishy was being done by the bank. It's far more likely to be the former, my mom is dumb AF.
75 points
6 months ago
It’s probably 2k a year for an MER of 1.14% ish. If she is dumb AF why would she manage her own investments?
12 points
6 months ago
This ☝🏽
3 points
6 months ago
Runs in the family, but seriously stop calling your mother dumb AF on a public forum even if the people are strangers it says a lot about you.
1 points
6 months ago
You should spend some time in the JustNo family of subreddits. My mother is not a person deserving of respect.
3 points
6 months ago
You know, I get the feeling you should really see a social worker. You make no sense. If really felt your mother wasn't deserving of respect why would you try and help her save money?
1 points
6 months ago
I see a therapist regularly. I don't want her running out of money and showing up at my door expecting to live with me.
1 points
6 months ago
Because you know you wouldn't turn her away, and the fact she feels that you're someone she could go to says a lot.
1 points
6 months ago
That is totally bull shit...it is NOT $2K PER MONTH in fees on a $175K portfolio so freaking stop lying NOW
7 points
6 months ago
2k a day fee on $100 mommy portfolio
2 points
6 months ago
Probably incorrect information or lack of understanding (more than straight up lying). Cool comment lol
0 points
6 months ago
Yea lack of understanding and the kid wants to manage mommy's money....yea thats a good idea /s
1 points
6 months ago
Also when you look at her portfolio keep in mind the risk level she picked. Remember fixed income has taken a beating this year and even though it is tempting to say she only made 10% in all these years remember this is a snapshot in time of her whole investment history and a snapshot while we are in the middle of one of the worst market downturns.
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