Consolidate your savings

Consolidating your savings into one plan can make managing your investments simpler. It can also lead to less confusion or stress. It might even mean more money for retirement.

Look at the management fees you’re paying.

Whether its mutual funds or segregated funds, every investment comes with fees. It’s usually shown as a percentage. The percentage may seem small. But even a 0.75% difference in these fees over time can mean thousands of dollars towards your retirement savings.

Look at your investment returns.

Having your savings in one place can help you maximize your returns. Your various plans perform differently. It’s important to compare which plan or fund has performed better, over both the short and long terms. You can do this by checking your plan’s rate of return. The rate of return is the gain or loss you make as a percentage of the total amount invested. Now ask yourself “Am I missing an opportunity to earn more on my investments?”

Make it easier to keep track of your investments.

Managing your household finances can be difficult enough. Having multiple savings plans, in multiple places, adds complexity. Keeping track of your investment performance, investment risk and fees is easier when you’re dealing with one plan and one statement.

All funds have some measure of volatility and risk. Determining the amount of risk you’re comfortable with is important.

Finding a plan that performs at your comfort level and has lower management fees could mean a difference of thousands of dollars. This may also mean more years of steady income once you retire and start drawing income from your savings.