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Glossary term
MER — Management Expense Ratio
Management Expense Ratio — annual fee charged by the fund manager, auto-deducted from unit values. Canadian bank mutual funds typically run 1.5-2.5%; self-directed ETFs run 0.05-0.30%. Over 30 years, 2% MER eats 40-50% of potential final capital (T-REX score).
Related terms
T-REX Score
T-REX Score (Total Return Efficiency Index) — Larry Bates' metric from 'Beat the Bank': share of compound ret…
CRA
Canada Revenue Agency — federal tax authority. Administers income tax, GST/HST, RRSP/TFSA/FHSA contribution r…
CCB
Canada Child Benefit — tax-free monthly payment for families with children under 18. Amount depends on family…
OAS
Old Age Security — federal pension benefit for residents 65+. Max $727/mo (2026) depends on years of Canadian…
CPP
Canada Pension Plan — contributory pension. Employee + employer each pay 5.95% of earned income up to YMPE $7…
RRIF
Registered Retirement Income Fund — conversion of RRSP to a retirement income vehicle. Must be done by end of…
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