Hello,
I have always bought my companies investment, and gotten there match. I just received a significant pay increase, and all of my needs are met on my old wage. I do not want to increase my lifestyle to garbage this increase on senseless crap, but want to invest it instead.
I am a member of PEPP where I work, which is a group contribution plan. I contribute 6% of gross auto deposit, and my employer does 6.5% of gross.
The rules state that I can make voluntary contributions to this fund to a max of 18% of gross. I will do this.
The question is I have RRSP room from the past, that I would like to start maxing, but I am not sure where to put this money.
I have a friend who sells investments from Primerica Finical Services. He thinks that I should invest with him(of course right) and from my research, the funds that he is able to sell me are cheap in the terms of mutual funds, from a MER point of view. I suggested Vangaurd or Questrade, because I have read the MMM site and much of the fourm, and that is what is generally recommended by everyone. He said that he doesn't care if I buy from him or not, but DO NOT but these funds. You have to actively manage them, and can lose everything if you don't.
Part of me says this is just him doing his sales thing, and trying to scare me out of that option, but this is a friend of mine, who in the past, has always wanted what is best for me.
So my question is, how much active management do I need to take in a vanguard type fund? I am smart enough to realise that I could lose my principle in either place, but want to protect my self as best I can.
FYI
PEPP - 0.64% MER
Primerica fund - 2.5% MER (crazy)
and everyone knows what vanguard type fees are...
Thanks for the help.