“If you work for an employer, you can get target-date funds right now in one of two ways. If you work at a large employer that has a pension plan, some of those There are similar programs near where, if you take part of your pay check and put it in the RSP, they can match that, and then you may be able to reach a goal like this- Date Deposited Funds.But, this is generally only available to employees of large corporations.
“Another way you can get access to one of these target date retirement funds is through mutual funds, but the average fee on these products is 2.05%, which is way too high in my opinion. Hence, what we offer. That comes out to more than 75% less. In the long run, this gap will save Canadians who regularly contribute potentially hundreds of thousands of dollars.”
Evermore is offering eight funds with 2025 to 2060 target-dates, available in five-year increments. Hence, customers can buy them according to their retirement dates and have different asset allocations.
“The further out, they have more exposure to equities and over time, the amount of exposure to equities decreases and the volume of bonds increases,” Janeck said. “That’s because younger people can, and should, take more risk, and, in the very long run, as measured over decades, stocks hold back and have great returns.
“But, older people need more portfolio stability. Hence, hence the higher allocation to leapfrog later. What we are doing is providing glide paths that change asset allocation over time, And that’s something that isn’t currently available in any ETF. That’s what makes it a different target-date ETF. It has this asset allocation that changes over time to match the investor’s risk appetite.”