Investing

“I’m interested in investing but I don’t really understand how to get started. Could you please explain how to begin investing in index funds?” The work involved in learning about investing may seem overwhelming when you have no idea how to begin. The following is a primer on how to get started investing with an…

My DIY investing journey began after the global financial crisis in 2008-09.  It wasn’t until markets crashed by as much as 50 percent that I started to take notice of my investment statements and performance. Aside from the significant decline in my portfolio, the most alarming number was the 2.7% MER being paid on a…

The first Canadian ETF was created in 1989 and called the TIP-35, which tracked the TSE 35.  Since then, the ETF market has expanded considerably.  Currently, according to BlackRock, there are over 3,000 different ETFs available globally. ETFs started out as a way for investors to tap into the returns of major stock markets using a…

While I continue to battle my behavioural biases when it comes to investing, I’ve at least given some thought as to how I’d make the move to indexing from my current portfolio of dividend stocks.  The answer is a two-fund solution. To make things as simple (and cheap) as possible I’d start by liquidating all…

One of the strongest arguments made by investment industry groups against banning embedded commissions – or the trailer fees paid to advisors when you purchase mutual funds – is that investors don’t want to pay up-front for financial advice. Advocis, which represents financial advisors across Canada, and the Mutual Fund Dealers Association, believe things are…

To be a successful investor you need to control your emotions and commit to a disciplined investment plan. If you have an investment advisor or manager, he or she should have prepared a written investment policy statement (IPS) for you. This goes beyond the boilerplate “Know Your Client” questionnaire we’re familiar with. The IPS is…

Last week we reached out to a panel of experts to weigh in on a controversial topic: borrowing to invest. Leveraged investing isn’t for the faint of heart. That’s why most of our experts suggested avoiding leverage and instead focus on building wealth the old-fashioned way – by saving over time. So if leveraged investing is…

Warren Buffett famously said that investors should “be fearful when others are greedy and greedy when others are fearful.” Yet one look at statistics on leveraged investing suggests that we do the exact opposite: Investors have borrowed more money than ever to buy into this post-financial crisis bull market. Leverage can be a powerful tool in…

The current stock market turmoil has prompted many investors to re-think their investment approach. Should I buy on this dip, or wait for the bottom to hit? Is this a good time to sell and take profits? What about the long-term economic outlook? Should I buy more oil & gas stocks? It’s easy to stick…

A few days ago while my husband was watching interminable football game (after game, after game), I was scrolling through various financial sites and came across some interesting articles asking how many stocks should you own in your portfolio. Some advisors say no more than 10. Some say that 20 to 25 would give good diversification…