I am a younger Canadian and want to put more thought into investing, and investing in Canada. What would you recommend?
From my reading so far I'm looking at ETFs with WS, and that I should start with the TFSA. Am I on the right track and what do you recommend?
How deep do you want to go? A person with an intense desire to understand everything and use the best data to take sensible decisions will like The Rational Reminder podcast and it’s wide content. Recently it discussed a paper challenging the use of bonds in a portfolio and proposing 100% stock in a 1/3 domestic market - 2/3 international market split as the optimal portfolio in most situations. Don’t take my word for it, understand the underlying logic and if it’s right for you yourself. Bonus for the nerds: how is the current chaos supporting or contradicting the efficient market theory?
If you want a more condensed explanation: don’t invest money you will need within the next decade and focus on low cost (low MER) index etf. Some all in one etf exist or you can choose 2-4 etf and rebalance them yourself. You don’t have enough talent and ressources to do single stocks: most professionals gets results below the market average.
Thanks!
If you want a more condensed explanation: don’t invest money you will need within the next decade
Does this include ETFs? I have some money in one and more sitting in a bank account, figured I'd make a plan and set it up properly
Congrats for thinking like this when you’re young!(I wish I had!) Yes, make a plan! That’s the first step. Write down your goals (what you want in life and need the money for and when) Then do your risk profile. Then check that you have the basics of personal finance in place (no debts, emergency fund, etc) There are courses and online resources for this. McGill has just updated their personal finance and investing online course!
Yes ETF are the best tool to access low cost index fund.
Both stock and bond will see high variation in price : don’t put yourself in a situation where you divorce or loose your job during a downturn only to need the money and sell at a loss.