Friday, May 13, 2022 / by Mario Daniel Sconza
Getting into the stock market can be a daunting task as many beginning investors not only struggle with the risk aspect, they also struggle with the logistics of "how to" actually getting their money invested.
A financial advisor would seem like a logical choice and we have done sessions in the past about choosing a good one, but the fees can be high and they may not even be willing to work with clients who don’t have a lot of money to invest. There are also no guarantees that an expert advisor will get you comparatively higher returns than other alternatives, especially if you factor in their fees.
A second option is to go with a full DIY approach using an online brokerage. Plenty of Canadians use this approach and have been successful, but you will need to do some research before you get started, monitor your risk, and make adjustments to your investment portfolio from time to time. It will require more of your time, although there are some new types of Exchange Trade; ...
Friday, May 6, 2022 / by Mario Daniel Sconza
1. Start small and invest early
Starting small could be as little as $100 month and starting early means now! Invest what you can and don’t think a $100 monthly will never amount to anything. Only around 5% of Canadians under 25 have a TFSA, which means 95% have already missed out on 7 years of compounded returns! Investing that "measly" $100 month at 5% for 47 years (18-65) will give you $68,754 more than someone who did the same for 40 years starting from age 25. Time really is money when it comes to compounded returns, so get started as soon as possible.
2. Make more or spend less?
Our advice would be to do both, but there are limits on how much income you can generate and cutting back on expenses has a larger impact on your bottom line. You may even be able to cut back without a huge pain factor by first auditing your expenses and keeping track for a couple of months. You may find some expenses you could do without, like that "lightly used" gym membership o; ...
Sunday, May 1, 2022 / by Mario Daniel Sconza
Friday, April 29, 2022 / by Mario Daniel Sconza
It sounds so cliched to say, "make savings a habit" and it really is only half the picture (you need to save and INVEST your money) but developing a saving mindset early in life will pay back huge over the course of a lifetime. Your kids need to learn the value of investing their money, how compound interest works, and a few basic investing principles (diversified holdings, long-term timeline, keeping annual fees to a minimum).
Investing will never happen without saving, so kids must understand how and why they need to save, be extremely conscious of living within their means, and learn to carefully evaluate their spending (needs vs wants) decisions.
As parents we do our best, but there are lots of life lessons we need to teach, and personal finance doesn’t always top the list. We may also not be the best equipped to do the job since around half of adult Canadians live paycheque-to-paycheque! Case in point, many well-meaning parents set their kids up with a bank; ...
Friday, April 22, 2022 / by Mario Daniel Sconza
With the latest inflation rate coming in at 6.7% and interest on cash savings lagging well behind at under 2%, piling up cash in the bank is a dead-end strategy. Consequently, there are a lot of first-time investors eyeing the stock market, especially after the huge run-up in stock prices we have seen since the pandemic-induced sell-off in March of 2020. If you are on the outside looking in and wondering how to get started, check out our take on three of the most common questions we get from would-be investors.
1. How do I pick stocks?
The short answer is you don’t have to (and probably shouldn't) rely on picking stocks! Even if you had the time and knowledge to investigate and evaluate potential companies to invest in, your chances of picking winners with any sort of consistency is very low. Holding a limited number of individual stocks is also a risky strategy. A more sensible approach is to choose a diversified bundle of stocks made up of companies across many indust ...