I started investing very young however, not mindfully. One of the financial advisors at the bank told me to buy mutual funds when I was 18 and I bought. They said, my money is just being wasted in my savings account. At 18, I think that was a smart decision. Many people I speak to now, still don’t have any investment plans! Which is scary!
But looking back, I didn’t understand anything my financial advisor was saying. They said, to buy, I bought. They told me to switch and I swtiched! But, now I know that mutual funds actually comes with high fees. These financial advisors are incentivised to sell you these funds because, they are making commision on it. You will notice, every new financial advisor will ask you to change or update or upgrade to a different fund. It puts the sale under their name. Minus the high fees, the only good point about mutual funds is that you are not managing it. It is being passively managed and the dividends you are earning are being reinvested.
That is why, I won’t really break my mutual funds. I have both RRSP and TSFA mutual funds however, I would have told my 18 year old self to invest in self directed ETF’s in RRSP in Questrades for lower fees. Only recenlty I made that switch. Questrade offers lower fees compared to major banks and it’s easy to use. I realized if you buy US ETF’s in TSFA, you will get with-hold tax later on when you sell them. However, owning ETF’s in RRSP is better because, you will not have to pay that with-hold tax.
If you don’t have an investment plan, get to it now! NOW! If you need help, I am always here to help.
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