Retirement Planning Vancouver | What to Know to start Investing in Canada
When it comes to investing in Canada you may know exactly what you want and need to do. This article will be a good checkup or reminder. The goal is to share and confirm all the things you are doing right and maybe even show you some things you did not consider. If you are new to investing in Canada or totally overwhelmed by the thought of it, then this article will help you get some clarity on where to start.
There is no need to feel overwhelmed and as a result never get started at all. The questions presented will stir up some constructive thinking to give you a solid framework on getting started. If at any time you need expert advice, Thomas C Chan is just a phone call away. The first 15-minute call is a free consultation. You have nothing to lose and your future to gain. Call (604) 877-4211 today or visit his website for more info at thomascchan.com.
Why are you investing in the first place?
The first thing to ask yourself when thinking about investing in Canada is, what is the purpose of having money? The reason to ask this is so you know how much and how long to save. You must have your end goal defined. From here you can reverse engineer and create the map to get to it. If it is to send your children to university or pay their college tuition then the risks you take with investing in Canada will be different from the risks you take for when you are saving for retirement.
Have goals in mind when investing
One of those goals is short and may require higher risk to get money saved quicker. The other is the long game strategy, where the money sits and grows and is ready for you at the end of your career. You do not want to risk that golden egg. The amount of time you have to invest becomes a major factor in how you invest.
Don’t be afraid in Investing
How much money can you risk losing seems like a backwards way to think when you are only investing in Canada to have savings. Your whole goal is to have money saved up for whatever your needs or desires are. But let us get digging a little deeper, what you are really asking yourself is what is your risk tolerance? Are you more scared of what you will lose than excited about what you will gain? If yes, then your risk tolerance is low. Your investments will be chosen according to this strategy.
If you have an opposite attitude towards money where you know there is always a risk when investing in Canada but you are at higher tolerance for it, then you can choose investments that may be higher risk but have a much higher reward. You may need more time to keep your money in your investments with this second scenario. Time in the market becomes a major factor in your strategy. Time in the market should be a part of everyone’s investment strategy.
Bad Investments will happen
Some other factors that come into play when you invest is, when and why you would sell the investment? Are you a panic driven person who follows the herd? Maybe you are the type to panic when you see fluctuations in the market? Do you fall prey to what others are saying, especially the media. If you are educated in investing in Canada and terms around money you will guard yourself better from being pulled in directions that do not align with your goals.
You should always go back to aligning your investments with your goals. You will need to decide ahead of time before emotions try to take over, what your boundaries are in keeping or selling your investments. It is so easy to fall prey to the media because often it causes hysteria, or it makes something else look more enticing.
A little bit of fear is good when Investing
These should never be your criteria for investing in Canada or pulling your money out prematurely. You will want to battle the fear of missing out because that is risking everything on an emotional decision. Set your boundaries ahead of time and keep on course. Time in the market will help eliminate unnecessary risks. Always set your expectations based on your goals.
Be sure you know what you are doing
Once you have investigated and mapped out your answers to all the previous questions it now comes to the point of where do you start your investment? How do you choose from so many options and avenues. You know why you want to invest, and you know what your end goal dollar amount is but what is the best vehicle to get you there? How do you decide which asset category to invest in, or even what stock to go with? In all honesty there are too many choices out there which makes it overwhelming and confusing.
Other routes when investing
You can take the easier route by going to the bank and asking for help from one of their advisors. The advantage to this is that the bank is familiar to you, especially if you have had a bank account there for many years. If that is not a good option for you, you may prefer to go to platforms like Questrade and operate the investments yourself.
Hire an advisor if you are unsure
Another option is to hire an advisor to do the investing in Canada for you. Thomas C Chan is ready and willing to be your trusted advisor. When choosing this personal advisor, you will want someone who is experienced and has the same goals as you. Something else you could do is join up with a robo-advisor like Wealthsimple. This platform chooses your investment options for you.
The biggest warning here is to not fall into analysis paralysis. You can always start with one investment and get the hang of it, then choose another. Keep learning and repeating the process until you are comfortable and then move into different asset categories from there.