There Are Safe Investments

Companies tend to give the best deals to new customers because getting them in the door offers a chance to sell more stuff. Existing customers often think they get the best deal, but don't as a telling Bank of Canada study of mortgage practices revealed.

Who wouldn't jump at a two-for-one sale at their favourite store? Thafs 50 per cent off each item. But how many would fight to reduce annual fees on investments from 2 per cent a year to 1 per cent? We know it makes a difference, but the number seems so small.

If you invest $6,000 a year for 40 years in a registered retirement savings plan, earn 5 per cent and pay a 2-per-cent fee, you'll have $435,000. If you were only paying 1-per-cent, you'll have $606,000.

There are simple ways to stop doing dumb things with your money. Hie first step, is to reflect on past decisions to identify where you can change your behaviour.

The goal isn't to make a perfect decision, but do the best you can and move forward.