Author Topic: Investment advice wanted  (Read 998 times)

Bodrey

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Investment advice wanted
« on: June 03, 2019, 07:15:12 PM »
New to MMM. I know saving is only half the battle/equation; that it's also very important to invest in order to build wealth. Unfortunately, I am not investment savvy; I wish I was. I'm hoping some readers here can give me some advice on how to get started investing in stock market index funds. If that's you how did you get started? Do you invest through a financial advisor or did you open your own trading account (again, no idea how to do that)? I'm particulary interested in getting advice from fellow Canadians about how they got started. Of course, I welcome tips/advice from everyone on saving and investing in general; what has worked for them, ways to free up money to invest, etc. Thanks in advance for reading and replying!

Freedomin5

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Re: Investment advice wanted
« Reply #1 on: June 04, 2019, 01:03:58 AM »
Canadian here. I was in the same boat about 5 years ago. Many Canadians here use one of the Canadian Couch Potato's (CCC) model portfolios. I use CCC's ETF portfolio. The entire CCC site is great, though it can be a bit overwhelming for newbies.

https://canadiancouchpotato.com/model-portfolios/

For a more gentle introduction to index investing, JLCollins Stock Series is also a good resource, though targeted to Americans. It will give you an introduction into the basic why and how of index investing.

https://jlcollinsnh.com/stock-series/

Andrew Hallam's book "Millionaire Teacher" is also a good resource. He is a Canadian who worked as an expat teacher for several years before retiring early.

I used to have a financial advisor. I still have one for more complex tax stuff and investment planning, but not to purchase investments. Instead, I opened a TD Web Broker account (since I bank with TD). All of the major banks should have an online brokerage. The tellers at any of the banks should be able to direct you on how to open the account. Other Canadians use Questrade or another online trading platform.

Do more reading on the Canadian Couch Potato site before deciding whether to open a trading account and use ETFs or simply buy low-cost index mutual funds, etc.

And if you want specific advice on how to free up money to invest in your particular situation, I would suggest posting a Case Study on the forum. Go the Case Study section and use the outline/format that is posted. Lots of people here will be willing to chime in on how you can cut expenses and increase savings.
« Last Edit: June 04, 2019, 01:06:44 AM by Freedomin5 »

GreatLaker

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Re: Investment advice wanted
« Reply #2 on: June 04, 2019, 03:46:38 PM »
Another Canadian here. +1 on the info posted so far. CCC and J Collins sites are good. Millionaire Teacher is especially good.

I used an advisor with a big broker for years, starting well before discount brokers were available. I decided to DIY after learning what the impact of fees will be on a long term portfolio. I took about 3 months of reading books and blogs and online resources, then opened a discount broker account. No regrets at all.

Finiki, the Canadian Financial Wiki is an excellent financial site for Canadians. I'd recommend reading Millionaire teacher first, then Finiki, then Canadian Couch Potato. J Collins site is a little more advanced. Also if you want a very in-depth book, The Four Pillars of Investing by William Bernstein highly recommended. That and Millionaire Teacher completely changed my outlook on personal finance and investing.

https://www.finiki.org/wiki/Main_Page
https://www.finiki.org/wiki/Getting_started
https://www.finiki.org/wiki/Portfolio_design_and_construction
https://www.finiki.org/wiki/Balanced_ETF

When first starting, keep it simple. Balanced ETFs (the last link above) let you get broad diversification at extremely low cost in one simple investment. They are suitable for new investors all the way up to million dollar portfolios.