Where Should I Go to Invest?
And How Much Do I Need to Start Investing?
When it comes to dating in North America, technology has led to creative apps in dating; making it easier to meet someone. But when it comes to finding someone to help us with investing there are limitations.There are three main places where we can go to start our investment journey.
1. Bank Branches and Mutual Fund Companies
The first place to look when you have a small amount is banks and mutual fund companies .The benefits of mutual funds are that you get diversification with a SMALL amount of money and you can sign up for pre-authorized contributions to buy small amounts of the mutual fund each month. The huge disadvantage with mutual funds is they are the most expensive type of investment product in Canada. So once you have more money to invest I would suggest you seek someone who can sell more than just mutual funds.
Tip: make sure the advisor can sell you any mutual fund in the market and not just their company funds or proprietary funds.
2. Investment Brokerage Firms (Bank-owned or Independent)
The second area is investment or brokerage firms that employ people who are fully licensed to buy all types of investments, such as, stocks, bonds, exchange traded funds, mutual funds and insurance. This area is great because you can buy diversified exchange traded funds which are less expensive than mutual funds and outperform over time.
Tip: make sure you understand what the advisor is buying because they can do more with the portfolio, given that they have more options.
3. On-line Investment Brokerage Firms (Bank-owned or Independent)
This third area is where you can DIY with an on-line brokerage firm. I have researched and compared fees because it matters when you have a small amount of money to invest. But if you have more money then it becomes much cheaper to trade with any of the online brokerage firms. Check out this link to see brokerage firm comparisons.
Tip: If you need help to learn how to invest there are online courses or you can engage the services of a coach with an investment background.