A guide to help you invest your money now

It’s so much easier than you think. Right now, so many people are sitting on excess savings because for the last two years we haven’t been able to do much or travel anywhere. It’s time to get that money working for you!

Check out these tips from money expert Kelley Keehn to help us navigate our way through investing, whether you’re a beginner or advanced.  

Saving vs. investing

If your money is just sitting in a bank account, it’s really not doing anything. And after inflation and taxes, you might actually be losing money. Investing means you’re putting it away for the long-term—you’re letting your money make money. This time of year, people are throwing their money into an RRSP or TFSA, which is great, but we also suggest taking the time to dig in and make sure it’s not just sitting there.  

Stock Market Investing

Intermediate/Advanced: Work with a money manager

Mutual funds have a bad reputation because they tend to be expensive. If you’re looking for a more affordable option, Robo advising is a great way to go. This is a virtual way to speak to an advisor without stepping foot into a bank. They can access risk versus return, and build a portfolio for you. Plus, it rebalances automatically so it’s sort of a set-it-and-forget-it strategy.  Through these platforms, you are put through lower-cost investing and so the fees are much less than investing in traditional mutual funds with your bank or financial advisor. 

Advanced: DIY trading

Investments are like a bar of soap, the more you touch them the smaller they get. If you’re looking to do your own thing, remember, frequent trading can cost you in the long run with high fees. And don’t totally dismiss the experts. There are some habits you can borrow from the pros that will improve your outcomes.

Real Estate

Intermediate: Build equity in the home your live in

Even with the likelihood of interest rates increasing, homeownership is still a worthy goal. Buying a home and paying down the mortgage will increase your equity aka forced savings, over time. As you age, you can access your equity for things like retirement or taking a sabbatical.

If you are a renter, there are still options for you too! In many markets across Canada, renting is still less expensive than owning when you consider repairs, property taxes and maintenance. If you can invest the difference between renting and owning, you can still proactively build your wealth and get your dream of owning a home. 

Advanced: Invest in rental properties

A rental property could be an apartment or a house, it could also be a cottage or basement suite. There are tax advantages with investment properties such as righting off the interest on the property, repairs and more. But there’s also the risk of uncertainty, damage to your property, etc. And before you jump the gun and invest you need to ask yourself a few questions like are you willing to be a landlord? Are you going to use that property? Know yourself, know what you’re capable of and crunch those numbers.

Career

Intermediate Invest in yourself or in a career

Skill acquisition is always a great thing to be mindful of. And this isn’t just about learning, but a skill that you can actually use for yourself or your company. LinkedIn is a fantastic resource not just for networking but also for the incredibly versatile courses you can take.