Comments on: 5 Investment Products I Avoid

By: kjk

kjk — Wed, 27 Feb 2008 04:29:11 +0000

While I agree with most of what you’ve written, I would say that Flow Through Share Tax Shelters, though not for everyone, are a good investment for some. Specifically those who are in the highest tax bracket and have already maxed out their RRSP’s. Yes, you are investing a speculative industries, but the tax deduction is so appealing that even if the investments drop by 50%, you may still come out ahead.

Besides RRSP’s Flow Through Tax Shelters are about the only other ligitmate sizable tax deduction

By: Mom2KG

Mom2KG — Sun, 24 Feb 2008 19:47:45 +0000

Just back from a timeshare-type of holiday. We sat through the pitch last year and did NOT buy, but worked out a deal where we can come on a per-visit basis, using exactly the same amenities the owners have. Except – no fees, no lock-in, no date restrictions! I rarely push for deals like this but it was quite easy once we asked about options other than ownership.

By: CheapCanuck

CheapCanuck — Fri, 15 Feb 2008 19:17:00 +0000

My wife has a contribution matching plan at work with segregated funds. So far the performance has been decent, but has underperformed our basket of index funds. Unfortunately no way to change it, except to opt out completely. Don’t want to give up those matching dollars though!

By: Canadian Capitalist

Canadian Capitalist — Fri, 15 Feb 2008 17:05:11 +0000

Thanks for the link. Rather than have an exclusion list, I work from a list of assets I am interested in: Short-term bonds, RRBs, Canadian, US, EAFE and emerging market stocks, REITs. If I want to add any asset that doesn’t fall in the list, I think very hard about it.

By: FourPillars

FourPillars — Fri, 15 Feb 2008 16:35:44 +0000

One word – LSIFs! (Labour sponsored funds).

I got burned by these a long time ago – I bought them mainly for tax reasons of course.

By: tc

tc — Fri, 15 Feb 2008 15:34:37 +0000

Hmmm… my employer provides an RRSP matching program where the funds that I can choose from are all segregated funds. All except one have an MER under 1% with the median being 0.38% and the average 0.48%. Is there any reason other than MER that one would not want a segregated fund?

By: MillionDollarJourney

MillionDollarJourney — Fri, 15 Feb 2008 15:17:41 +0000

Thanks for the mention TMW. I’m in the same boat as you. I usually avoid PPN’s, segregated funds, tax shelters, and any mutual fund with front end/back end charges.

By: squawkfox

squawkfox — Fri, 15 Feb 2008 14:55:31 +0000

Awesome list! I would also add mutual funds with high fees, sneaky trailers, and loads. I was sold a few high-fee mutual funds about 7 years ago, before I took responsibility for my investments. When I discovered how these fees ATE my portfolio, I cried. I really wish more Canadians would read their prospectus before investing their dollars. Sadly, most of my friends spend more time researching a TV purchase than an investment purchase.