Author Topic: The Basics for a Canadian re Index Funds  (Read 2289 times)

termetgirl

  • 5 O'Clock Shadow
  • *
  • Posts: 9
  • Age: 37
  • Location: Ontario, Canada
The Basics for a Canadian re Index Funds
« on: September 27, 2014, 12:43:07 PM »
Hi there,

I am trying to find a thread with a list of sources to direct someone to who has only basic investment knowledge to introduce the idea of investments with low costs. So, sources for someone who is not a mustachian and has never heard of early retirement or any of the stuff that gets discussed here.

Here is the context: someone in my family (not me, I wish!) is retiring, and has in the last few years of his career amassed a great deal of cash. Bonuses and exercising stock options, whatever, the point is he has about $2 million to invest, is only 56, and has never invested before. He's asked me to look over some documents before he signs up for an actively managed fund that charges 1.65% plus transactional charges, from what I can see (reading the documents was not very much fun!).

I am looking for some good sources to point him to to read up on index investing, etc. Articles from prominent publications, books, are preferable to blog posts in this context. Anything with a Canadian perspective would be particularly helpful, but isn't necessary.

Any ideas greatly appreciated. I haven't been asked to suggest alternatives to what he is about to sign up for, but I don't think he'd mind if I pointed him to a few sources to educate himself before he makes a huge commitment. I saw some tools and videos on the Vanguard Canada website, but I'm trying to find sources that are not put out by a company.

If there is already a thread on this, please point me there.

Thanks so much.

daverobev

  • Magnum Stache
  • ******
  • Posts: 3439
  • Location: France
Re: The Basics for a Canadian re Index Funds
« Reply #1 on: September 27, 2014, 05:05:15 PM »
Canadian Couch Potato should have everything you need.

RichMoose

  • Pencil Stache
  • ****
  • Posts: 971
  • Location: Alberta
  • RiskManagement
    • The Rich Moose | A Better Canadian Finance Blog
Re: The Basics for a Canadian re Index Funds
« Reply #2 on: September 27, 2014, 10:59:36 PM »
The information you've provided is very limited, but indexing may not be his best option. If he's amassed a lot of money in a short while he will likely need to be worried about tax implications. He should hire a fee-only financial planner in his area (Moneysense magazine has a listing of fee-only planners on their website). He should also consult with a CGA/CA.

You're right in that active managed funds may not be his best option, but switching to indexing can be just as damaging depending on his situation.

Captain and Mrs Slow

  • Bristles
  • ***
  • Posts: 414
  • Age: 59
  • Location: Munich Germany
Re: The Basics for a Canadian re Index Funds
« Reply #3 on: September 28, 2014, 09:18:01 AM »
I second the couch potato and would also suggest as well Millionaire Teacher, great book easy to read and very entertaining.

Acipenser

  • 5 O'Clock Shadow
  • *
  • Posts: 4
Re: The Basics for a Canadian re Index Funds
« Reply #4 on: September 29, 2014, 10:17:50 PM »
Elements of Investing

http://www.amazon.ca/Elements-Investing-Lessons-Every-Investor/dp/1118484878/ref=sr_1_3?s=books&ie=UTF8&qid=1412050361&sr=1-3

The Big Secret for the Small Investor

http://www.amazon.ca/The-Big-Secret-Small-Investor/dp/0385525079/ref=pd_sim_b_56?ie=UTF8&refRID=0X183T7HBV0M0MSGCTZ9


Not Canadian, but the principles are the same. I would also second the recommendation of Millionaire Teacher.

Kaspian

  • Handlebar Stache
  • *****
  • Posts: 1536
  • Location: Canada
    • My Necronomicon of Badassity
Re: The Basics for a Canadian re Index Funds
« Reply #5 on: October 02, 2014, 11:41:39 AM »
Third for Canadian Couch Potato.