Investing 101 For Beginners
5 stars based on
It's never too early or too late to start investing. But if you've never invested before, how do you get started? If it's 10 per cent or less you should probably be looking at a more balanced portfolio with lower-risk investments.
Lower-risk investments include savings accounts, guaranteed income certificates GICsbonds, mortgages and preferred shares.
Higher-risk investments include various types of stocks and income beginner stock trading canada. Many people also include mutual funds in their investment portfolios.
As a note of caution, some types of investments have embedded costs and fees, so it's important to ask about these in advance. Different types of investments yield different rates of return. For bonds and mortgages, it would be inflation plus one per cent and for Canadian stocks it would be inflation plus three to five per cent. For international and emerging market stocks, it would be inflation plus five to seven per cent.
Diversification is also important. It's also a good idea to have a financial advisor. The type of advisor you select depends on your needs. You can start investing with any amount of money. If you decide to use the services of a licensed investment advisor, you may need to beginner stock trading canada a minimum amount to invest.
The biggest mistake made by first-time investors — and by some experienced beginner stock trading canada — is to let their emotions rule their decision-making. There are many ways you can educate yourself about investing. A Chartered Accountant can also help. Brought to you by the Institute of Chartered Accountants of Ontario. Login Contact Subscribe Now!