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?
TFSA with broad-exposure index ETFs is usually going to be the best option if you’re young. I have something like that.
FWIW I cut out the US specifically and it’s served me well over the past months.
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
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.
I don’t know but the market is very volatile right now. Whatever you invest now you might lose big in the short term.
But this all depends on your objective. What are you investing for? Short term gains? Retirement revenue? To buy your first property?
If you can answer that, we can give you better advice.
Long term gains, likely for a first property
RRSPs and FHSA is where it’s at. Now what to tie them to is another story.
Honestly a good adviser at your bank would probably be better suited to help you.
In these times I would probably go with something low risk with guaranteed capital so you don’t lose your initial investment at least. The interest will be lower though.
Edit: I forgot to mention to look up insurance companies as well, like Manulife or Sunlife. They have RRSPs and TFSAs as well with often more and better investment vehicles that bring more returns, but often with no guaranteed capital.
DO NOT take advice from financial advisors at banks in Canada. They are unregulated sales people paid to give advice that serves the interest of their employer.
The only people OP should consider taking professional advice from are flat-fee financial advisors. They will not find them at banks. And they must be flat fee.
If OP is not paying for the advice up front the advice is not going to be in OPs best interest.
