Investing

Investing; Where To Start?

  • Last Updated:
  • Aug 24th, 2017 6:44 pm
Tags:
[OP]
Deal Addict
User avatar
Oct 9, 2010
1615 posts
316 upvotes
Windsor

Investing; Where To Start?

So, I paid off my home pretty quick, but am already in the habit of putting $4k/mo into paying it off, so I figure I might as well keep up @ maybe $3k into "saving money" ... but I don't know diddly about investments.

I could go to my bank, but I have zero faith they'll do anything in my personal interests (based on the fact I've had all of my banks try to sell me things that were obviously not in my best interests). I tried just reading this forum, but I have no idea what any of this stuff is.

I understand the simple math of stuff, I just don't know where to look to. I'm only 35.
One who is offended by truth, has no place among those who seek wisdom.
20 replies
Deal Fanatic
User avatar
Jul 17, 2008
7382 posts
1254 upvotes
ChubChub wrote:
Jun 29th, 2017 1:09 am
So, I paid off my home pretty quick, but am already in the habit of putting $4k/mo into paying it off, so I figure I might as well keep up @ maybe $3k into "saving money" ... but I don't know diddly about investments.

I could go to my bank, but I have zero faith they'll do anything in my personal interests (based on the fact I've had all of my banks try to sell me things that were obviously not in my best interests). I tried just reading this forum, but I have no idea what any of this stuff is.

I understand the simple math of stuff, I just don't know where to look to. I'm only 35.
Open questrade and buy XAW/XIU
Or get Mawer MF's like MAW120 and MAW106

Don't bother with VAB and other bonds since you're only 35 and interests starts going up
Newbie
May 12, 2014
67 posts
24 upvotes
Brampton, ON
Explore WealthSimple, they are low fee ETFs
Deal Guru
User avatar
Aug 8, 2012
10198 posts
3803 upvotes
BC
tor1deal wrote:
Jun 29th, 2017 7:42 am
Explore WealthSimple, they are low fee ETFs
Correction. They are a 0.5% fee on top of low-fee ETFs.
POLL: How frequent is your RRSP-matching?
Plastiq: Pay any bill with credit card for 0-2.5% fee (help meet min spending and keep old cards active!)
Rewards program transfer times (e.g. SPG->Aeroplan, Marriott->SPG, Amex MR->SPG...)
Sr. Member
User avatar
Sep 19, 2013
883 posts
226 upvotes
Winnipeg
ace604 wrote:
Jun 29th, 2017 2:50 am
Where to start ... Canadian Couch Potato. http://canadiancouchpotato.com/model-portfolios-2/
tor1deal wrote:
Jun 29th, 2017 7:42 am
Explore WealthSimple, they are low fee ETFs
this and this,

Sites like WealthSimple are as easy and as cheap as it can get without having to do any brain-crunching for the investment portion. I'd recommend you start with WealthSimple while you gather some info on-the-side yourself. Once you are comfortable, you can start some basic DIY strategies.
Deal Addict
Nov 2, 2013
4730 posts
860 upvotes
Edmonton, AB
No right or wrong answer- depends on your risk appetite. The more you want to make, the more risk you take on.

Most people would echo ETFs as they're relatively brainless and require little work and hassle while letting you expose yourself to a large portion(s) of the market. As others said, read up on Canadian Couch Potato which outlines them pretty well.

Assuming you've been paying down your mortgage, we can assume that you're not exactly a risk taker as you've prioritized the 2-3% "risk free" return- so ETFs may be the best for you. Individual stocks potentially make more and many pay dividends- but they are more volatile, and require more homework.
Sr. Member
Jan 8, 2006
932 posts
228 upvotes
I would recommand reading Millionaire Teacher: The Nine Rules of Wealth You Should Have Learned in School. I read it last year and I am ready to take plunge in index funds.

You can also check out Warren Buffet challenge to Head Fund mangers and where he picks index fund and prove that they are better option than going with active investor.

I am still new to investing but this book make sense when it comes to long term investing.
Deal Addict
Nov 9, 2013
1852 posts
640 upvotes
Edmonton, AB
FirstGear wrote:
Jul 2nd, 2017 2:03 pm
No right or wrong answer- depends on your risk appetite. The more you want to make, the more risk you take on.

Most people would echo ETFs as they're relatively brainless and require little work and hassle while letting you expose yourself to a large portion(s) of the market. As others said, read up on Canadian Couch Potato which outlines them pretty well.

Assuming you've been paying down your mortgage, we can assume that you're not exactly a risk taker as you've prioritized the 2-3% "risk free" return- so ETFs may be the best for you. Individual stocks potentially make more and many pay dividends- but they are more volatile, and require more homework.
As FirstGear mentions, the best place to start is to figure out what kind of investor you are. If you're a set it and forget it type investor, and the idea of researching stocks and trying to do valuations makes you want to vomit, then index.

If you like the intellectual challenge of stock picking, and you're willing to put the work in, it can be rewarding as well. Within stock picking there are subtypes - value, dividend, growth - that you can dive into further.

Part of being a successful investor is knowing thyself and picking something you can stick with through thick and thin.
Newbie
Oct 10, 2008
77 posts
10 upvotes
mississauga
Try reading The Wealthy Barber-still relevant today.
Sr. Member
Apr 12, 2012
746 posts
165 upvotes
Toronto
AAPL. This is the ultimate stock for beginners
The simplest acts of kindness are by far more powerful than a thousand heads bowing in prayer.
- Mahatma Gandhi
Sr. Member
User avatar
Sep 19, 2013
883 posts
226 upvotes
Winnipeg
lemieux035 wrote:
Aug 10th, 2017 9:21 pm
AAPL. This is the ultimate stock for beginners
Why is it the ultimate stock for beginners?
Member
Jul 27, 2017
444 posts
107 upvotes
GTA
For a beginner/novice, my suggestion is don't go with those that recommend a particular stock, mutfund, ETF etc, for the reason it's not their money to lose - it's yours.

There is not cut & dry 'simple' answer.

Stock market investing is gambling, no guarantees, not for the faint of heart & it's your money to lose.

Of course long term its all suppose to come out in the investors favour, so it's said somewhere.

For now as a suggestion, take some money & park it in something along the line of Oaken one-year 2.5% GIC, then do lots & lots of reading & research, paper trade. Read couch potato as suggested above as a start

An investment advisor [bank or other] will likely suggest something that loses you money - their interest is only commissions.
Sr. Member
Oct 21, 2012
930 posts
281 upvotes
Toronto
My advise is dependent on how much work you want to do managing your money. If you want to do no work other than contributions, then I suggest researching and finding an advisor who invests in ETF's for the lowest fee possible with maintenance. If you are willing to invest yourself, the books and website already suggested is an excellent start and can be enough to get you well on your way. If you go this route, be patient, read until you feel like you can explain what you are going to do to someone else and why.

GL

Top