If you’re a longtime reader of my blog, you know that high mortgage penalties are the bane of my existence. Well, in  close second are high investment fees. So, when Larry Bates invited me out for coffee and asked me if I’d be willing to endorse his book, I didn’t take me long to answer with an emphatic yes.

Do you invest in mutual funds with the big banks? You’re not alone. So do millions of Canadians. Canadians are a trusting bunch. Each year the big banks spend millions in advertising to build trust and encourage us to invest with them. They assure us we’re “in good hands.” But if that were true, why are the banks stripping away half of our investment returns in fees? Something isn’t adding up…

Beat the Bank: The Canadian Guide to Simply Successful Investing by Larry “the Enlightened Banker” Bates blows the whistle on what he likes to call the “old Bay Street.” Larry encourages us to question the investment fees we’re paying to make sure we’re getting good value for our hard-earned money.

Larry shares some powerful stories over his 35 years as an investment banker. It’s like you’re a fly on the wall in his office. The book begins with one of these stories. Larry is meeting with a client, Mary, regarding her investments. Larry asks Mary if she knew she was paying 2.3 percent in investment fees. Mary doesn’t think it’s a big deal. What’s 2.3 percent of her investments gains? Unfortunately, that’s not how investment fees work. Larry informs her that it’s 2.3 percent of her total investment every single year. Mary is charged that fee regardless of whether the fund goes up or down. Ouch! Sadly, millions of Canadian investors are just like Mary. Thankfully, there’s something you can do about it.

Many Canadians assume that they have to be financial whizzes to handle their own investments, when that couldn’t be further from the truth. Investing is intimidating for the vast majority Canadians. And that’s no coincidence. It’s by design. By learning some of the basics lessons of investing found in Larry’s book, you’ll gain a newfound understanding and confidence to make these important financial decisions on your own behalf and look out for your own best interests. Because nobody cares about your own money more than you. Suddenly goals like burning your mortgage and an early retirement will seem achievable.

Larry’s book is fun and easy to read (a tall order for a personal finance book about investing). In chapter 3 he goes over “wealth builders,” such as amount, time and rate and “wealth killers,” such as fees, tax and inflation. He also introduces an interesting concept: T-REX Scores. Using Larry’s T-REX Score, you can rate your investments in terms of the fees. The closer to a 100 percent T-REX Score, the better.

Larry also introduces us to what he likes to call the “new Bay Street.” Investments that charge fair investment fees. ETFs and robo advisors like Wealth Simple and Nest Wealth that help keep more of your hard-earned money in your pockets where it belongs.

Larry’s book is very relatable. He includes case studies throughout the book. I especially enjoyed the one, “homeward bound,” on Jenny, whose goal is to build up enough savings to make a sizable down payment on her first home by age 35. Larry shows us how Jenny can reach her down payment goal sooner by investing with new Bay Street.

This quote sums up Larry’s book pretty well:

“The Wealthy Barber taught Canadians the importance of saving. Beat the Bank will teach Canadians the importance of investing well.”

– Wanda Morris VP of Advocacy, CARP

I thoroughly enjoyed reading Larry’s book. I stand by my endorsement inside the cover of the book: it should be should be required reading in Ontario’s new financial literacy course in high school. Whether you’re a basic investor or you trade futures in your spare time, there’s something for everyone. You’re guaranteed to be an enlightened investor after reading this book.

Sean Cooper is the bestselling author of the book, Burn Your Mortgage: The Simple, Powerful Path to Financial Freedom for Canadians, available now on Amazon and at Chapters, Indigo and major bookstores, and as an Audiobook on Amazon, Audible and iTunes.