Cookie78
Deja vu -- on Sunday, I spent the day double checking my IG funds. We have been unwinding / transferring them out for about 5 years now..! I own the same fund, in a A series and a C series....
Watch out for their 7+ years of back end fees on anything with a B or C at the end of the fund name. IG had a fun time trading within our account, keeping some funds always with in the back end fee range. We stopped investing with them (new money) in 2006 but I am still facing back end fees on my Investors Dividend C fund.
Hey, to make you feel better, we have IG funds with MERs of 2.9% AND a 7 year backend fee. UGH. And it is still better to wait it out for another year before transferring. Also, even with the high MER's, your fund (Investors Dividend) has been average or better performance, so that is good news, it is well managed, if expensively managed.
Advice
Coupled with commission costs in brokerage accounts, IG Back End Fees, and a learning curve (which could result in a lot of funds sitting as cash while you start investing), I would advise you against transferring out immediately. Start a new account with your 500 per month (or any new money). Transfer it all when you know more about the fees.
My personal move forward action plan (since 2010) -- trying to ditch IG
1) Canadian Couch potato and ETF's -- with much less in bonds than they recommend (I am having tremendous trouble putting myself into 40% bonds, especially bond funds, but at least I own some now.)
2)TD Discount Brokerage -- no fees on the TD fund trading, great for monthly investing smaller amounts, although MERs are slightly more. Questrade is actually my first recommendation, but TD is almost as good, their call-in desk persons are very good. TD had a lot of paperwork hassle to open, so be forewarned (lost documents, signatures, etc).
3) Rebalance annually by myself or when it hits 5% off the portfolio target. This was really hard for me to do, as I don't like selling when high to buy when low, but I am getting over it. Investing new money is easier.
4) Get the employer match at work, then invest the extra myself in my own TD account. Work's MER's are between 1.9% and 2.2%, but the rebalancing transfers are free, if you need / are required to keep some money locked in there, that is one small advantage.
This year, I am finally in the top income bracket, and will max out my RRSP contribution room. If I there had been TFSA's when we were younger (and less income), I would have definitely used them, to save the RRSP room for my higher earning years... (I was not maxing out everything back then -- my retirement goal was age 55 and partial contributions were plenty to achieve that).
Now I only have TFSA room left, and a high tax bracket, which is a much bigger bummer to me than I would have thought. So my advice, is, if your income is under $100k, and likely to increase:
a) get employer or any other matching
b) max out TFSA with income under $100k (I used to say under $75k, but this lack of RRSP room is real downer!)
c) then RRSP
d) throw in some free govt money for RESP's if that applies to you too.
And for all you US citizens out there -- having zero commissions on trades does not exist in Canada like in the good ol USA. I would love to have my 100 free trades a year back that I had with WFC....