Investing in 3 simple steps
You don’t need a lot of money or skills to start investing.
Here are the basic steps:
- Open a brokerage account.
- Buy a low cost, global stock index fund.
- Continue to build your investment knowledge.
That’s it. 😀 In the YouTube video below I show how to get started building a portfolio using these steps.
The video is mainly for people who live in the U.S.
But as a Canadian, here is what I would do to start investing today. 🙂
- Sign up for a trading account with Wealthsimple Trade.
They have $0 trading commission, and you can invest with their app. There are a few different account types to choose from. If you make less than $80,000 a year it’s probably better to start with a TFSA. Open an RRSP if you have a higher income. Use a Personal taxable account if you’ve already maxed out the contribution room in both of your tax-advantaged accounts.
- Buy XEQT (iShares Core Equity ETF)
This is a Canadian ETF, similar to VT in the United States. XEQT trades on the Toronto Stock Exchange in Canadian dollars. Buy as many as you can afford. 100% of your portfolio when starting out should be in this fund.
- Keep on learning.
Read investment books, online articles, business news, or anything else you have time for. Investing is a long term journey and you can adjust your portfolio accordingly over time.
Why a global equity ETF is the best asset for new investors
This 3 step strategy is designed to give you the best chance to retire with the most amount of money. It has historically outperform the vast majority of investors out there and requires no investment knowledge to start.
Investing for beginners
A global stock index fund is the go-to investment for anyone starting to invest for their retirement.
But this is analogous to suggesting people go on the mediterranean diet if they want to be healthy. It’s not a bad generic advice. But everyone’s bodys, habits, and lifestyles are different. So over time, once someone learns more about their own bodies and nutrition, they may decide to adopt a modified version of the diet, or choose something else entirely. Treat investment the same way. 🙂
Random Useless Fact:
Everyone has a bias.