Some of the most common questions when it comes to new investors are ‘where do I start?’ and ‘How much do I need to start investing?’
A solid budget is crucial to getting started. Experts suggest that those who wish to invest should have at least six months of savings before considering it, as investing can be risky:
“Patience and consistency are more important to success than a large amount of money when you first start investing.
Whether you are buying shares, investing in a managed fund, putting extra into your superannuation or opening a savings account or term deposit, regularly contributing small amounts will gradually make a huge difference.”
The most important thing you can do as a new investor, or someone interested in getting started, is shop around for a registered investment advisor who can offer transparent and informed advice, as well as suitability to your individual situation. The Globe & Mail completes a comprehensive annual review of online brokers based on their client experience, cost, account reporting, research, tools and innovation. This is a fantastic resource for new investors looking for the first step in beginning their investing journey.
Another option for new investors that feel like they need some more intensive information, the Canadian Securities Institute offers the Canadian Securities Course for Investors. It allows the individual to “learn the nuances of the investing world so you can be actively involved in your financial future, gather the intelligence you need to make smart investment decisions, feel confident in your newfound financial understanding, and get the most out of your relationship with your financial advisor”
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