Author Topic: Work SunLife RRSP - Where to invest?  (Read 2385 times)

Kexxis

  • 5 O'Clock Shadow
  • *
  • Posts: 17
Work SunLife RRSP - Where to invest?
« on: February 18, 2015, 08:09:53 AM »
Hi everyone,

My employee matches 2% if I contribute 3% to the work SunLife RRSP plan. I am trying to figure out where to put my contributions from the list they provided. I attached the list in the link below:

http://imgur.com/a/jTVfM

Could anyone assist me?

FLBiker

  • Pencil Stache
  • ****
  • Posts: 989
  • Age: 43
Re: Work SunLife RRSP - Where to invest?
« Reply #1 on: February 18, 2015, 08:15:05 AM »
It would be very helpful to know the expense ratios / other fees.

Kexxis

  • 5 O'Clock Shadow
  • *
  • Posts: 17
Re: Work SunLife RRSP - Where to invest?
« Reply #2 on: February 18, 2015, 08:55:29 AM »
No commission fees. It doesn't state anything else about other fees.

GuitarStv

  • Senior Mustachian
  • ********
  • Posts: 14614
  • Age: 38
  • Location: Toronto, Ontario, Canada
Re: Work SunLife RRSP - Where to invest?
« Reply #3 on: February 18, 2015, 09:11:25 AM »
We're with sunlife too.  The MERs on the index funds sunlife offers are lower than TDs e series stuff.  Go online and look up the 'couch potato' investment strategy.  It is perfect for what sunlife offers.

Kexxis

  • 5 O'Clock Shadow
  • *
  • Posts: 17
Re: Work SunLife RRSP - Where to invest?
« Reply #4 on: February 18, 2015, 10:24:59 AM »
Okay, I found the management fees and linked them below:

http://imgur.com/qw2wzMn

They seem very high. Should I only consider putting in the minimum to get the match? If I put in 3% they will match 2%.

Heckler

  • Handlebar Stache
  • *****
  • Posts: 1347
Re: Work SunLife RRSP - Where to invest?
« Reply #5 on: February 18, 2015, 01:34:49 PM »
I'm with SL through work as well. I spent 6 months with a balanced mix of funds, using the Bond Index, US index, EAFE index, and did OK, but my Vanguards are doing much better due to lower fees.

You're lucky you also have a Canadian index- my plan only offered the higher cost funds that under performed miserably.

Personally, I'm amassing funds annually in SL through paycheck contributions and employer match.  Then once a year, I pull the entire thing with no fee and move it to my self directed account and buy the Vanguard version at lower fees.

Your listed fees are quite a bit higher than my work plan- must be a factor of your companies volume, or lack thereof.

Heckler

  • Handlebar Stache
  • *****
  • Posts: 1347
Re: Work SunLife RRSP - Where to invest?
« Reply #6 on: February 18, 2015, 01:36:53 PM »
I'd look at a balanced mix of the TDAM index funds, similar to a couch potato portfolio.

Heckler

  • Handlebar Stache
  • *****
  • Posts: 1347
Re: Work SunLife RRSP - Where to invest?
« Reply #7 on: February 18, 2015, 01:44:50 PM »
https://www.vanguardcanada.ca/documents/product-guide-en.pdf


Vanguard has some pretty good portfolio strategies that you could mimic with the SL index funds.

RichMoose

  • Pencil Stache
  • ****
  • Posts: 969
  • Location: Alberta
  • RiskManagement
    • The Rich Moose | A Better Canadian Finance Blog
Re: Work SunLife RRSP - Where to invest?
« Reply #8 on: February 18, 2015, 07:13:55 PM »
These are very expensive funds, but worth it considering the Co. match. Because it's in an RRSP and you will only be contributing 3% (+2%) I would put it all in TDAM US market. Do not contribute more than what's needed to get the match! Just so you know how much Sun Life is ripping you off, you can buy directly from TDAM (not counting the e-series) for an MER of around 0.90%. Sun Life is taking a cool 1% themselves for virtually nothing.

Don't be afraid to start your own self-directed accounts (RRSP & TFSA) with a discount brokerage like Questrade or RBC Direct Investment and max out your remaining allowable RRSP and TFSA there using low cost ETFs.