Many firms in the wealth management space aggressively market their active management portfolios with absurdly high maintenance fees and outdated performance bonuses. As it turns out, studies show high management fees are most damaging to one’s investment portfolio. No one knows better than Warren Buffett who has become one of the biggest proponents of index investing in recent years.
Bonds are an integral part of every Canadian’s portfolio; and are particularly attractive to those investors at or near retirement as investors look to replace their regular and stable salary with a certain stream of interest income. But with interest rates hovering at all-time lows, the pressure to make every cent count has never been greater. Creating such exposure smartly can make all the difference in the returns.