**This post may contain affiliate links. I may be compensated if you use them.
This is a sponsored post written by me on behalf of TD Direct Investing. All of the opinions are my own.
Becoming a self-directed investor made a huge impact on my life. It completely changed the way I viewed money. By becoming a do-it-yourself investor, I was in control of my finances – it was a thrilling feeling. But, I have to admit, before I finally decided to go DIY, I had some concerns and misconceptions about what it meant to become an investor. It looks like I’m not alone.
36% of Canadian Millennials say they’re not sure if it’s the right time to invest, while 22% believe it’s definitely not the time, this according to a recent report from TD. There’s no doubt that the current low-interest rate environment has thrown some of us off – 37% of those surveyed say they don’t invest at all.
According to the report, limited money (46%), a lack of financial knowledge (40%), and confusion with the navigation tools (24%) were the top three reasons why Millennials don’t use self-direct investing. Don’t worry if you have these concerns; I had the same ones. Calvin MacInnis, Senior Vice President at TD Direct Investing, has an ABC guide to help Millennials invest on their own:
ABC Self-directed investing tips
Act now – Don’t wait, start investing now! With the power of compound interest, the earlier you begin investing, the more money you’ll have later in life. It doesn’t matter if you’re starting with just $1,000 or $10,000, you want to get your money working for you right away.
You may have been afraid to get into the markets due to the current conditions, but remember, investing is for the long-term. With a balanced portfolio, you can limit your risks, especially when you consider your timeframe.
Brush up on the basics – Now that you’ve decided to begin investing, you still need to have a basic understanding of investing before you dive right in. TD recently overhauled their Direct Investing’s WebBroker platform which now features videos, webinars, and seminars to get you started. These videos, and the tools available directly in the platform will help you become comfortable with investing before you even make your first trade.
The videos cover a wide range of topics so once you’ve graduated from your first trade, you can continue to learn more about investing, the markets, and managing your portfolio. You can also follow @TD_DirectInvest on Twitter for timely topics and trends.
Choose your own adventure – There’s no one set path when it comes to investing, and that’s great for consumers. You have complete control of your finances, so you get to choose which platform best suits your needs. The online tools, technology, and resources out there these days are amazing. Millennials should not feel intimidated when investing.
Remember, with the TD Direct Investing platform; you can invest in a variety of things. You can set up a self-directed Registered Retirement Savings Plan (RRSP), Tax-Free Savings Account (TFSA), Registered Education Savings Plan (RESP), and much more. Since all of these accounts are managed on a single platform, it makes investing easier.
Why self-directed investing was right for me
One of the main reasons why I decided to become a self-directed investor was the lower fees. I had read about the Canadian Couch Potato strategy, and they recommended the TD e-Series funds. By purchasing just 4 index funds inside my brokerage account, I was able to reduce my management fees by about 2%. This may not sound like a lot, but by the math; it could potentially be 100’s of thousands of dollars over the course of my investing years.
Once I got started, I realized how easy it was to invest. Sure, I made some mistakes along the way, but I learned from them. Now whenever I hear news about the markets, I understand what it means, and how it relates to my portfolio. I felt that investing on my own was like investing in myself, and you should too.
Final word
Keep in mind that even self-directed investors still need to pay some fees. Regardless of which platform you choose, take the time to become familiar with it before you make your first trade. The tools available are there to educate and help you. Hopefully, your switch to DIY investing will empower you to learn more about your money – like it did for me.
