“Chains of habit are too light to be felt until they are too heavy to be broken.” -Warren Buffett

Investing in our future - TFSA and DIY Investing

As we've started to move out of the zone of just paying down our mortgage and building our savings portfolio I've started learning about the world of the stock market investing.  Our small portfolio is primarily managed by a financial advisor we've been very happy with.  However I started doing some
math and listening to podcasts about investing and realized we are potentially losing out on a ton of gains, but using an advisor rather than taking a DIY approach to investing, like we've done with SO many other things over the years.
After reading MANY blogs (Canadian Couch Potato, ChooseFI, JLCollins Stock Series to name a few) I realized there were many great low-cost options that allowed for essentially DIY investing.  I started learning about Exchange Traded Funds (ETFs)  and DIY methods to investing, which admittedly, I'm still figuring out.

For now though, we decided to use a SMALL portion of our funds to open a TFSA and hold that money in index funds.  This means that each share I buy has a small portion of every fund on the Toronto Stock Exchange (TSX) for example.  This automatically diversifies my portfolio, and instantly means I should see returns equal to the market - which always goes up (given enough time).  It also limits the need to continually re-balance or even try to time the market.  We have MANY years before we'll need to access this money, so little dips now, or even a crash won't have long term impact as we're planning to just hold the funds for many years at this point.

Many studies have shown that timing the market just doesn't work.  At some point, the luck runs out (and it's a fine line between skill and luck).  The biggest predictor of growing your investment is that you continually invest over a longer period of time and leave the money alone.

I'm not going to go into great detail on all of this as several others linked above do a far better job than I could ever do... but the point I want to get across is that even when we might feel like we don't have enough knowledge on a certain subject and be afraid to try, in many cases there is a viable DIY approach just waiting to be taped!  The same is true for home or car repairs, or other things.  If we are willing to put in a bit of effort on the front end, we can often avoid costly repairs, outsourcing and so on!  What better way to build wealth, and your confidence!

When I was opening by TFSA I looked in to many options and decided to use an online brokerage to get the best bang for buck.  I ended up going with Questrade, as you can see they've been ranked as the best online brokerage in Canada in 2019.

If you decide to open an account, please use my QPass Key for a bonus (from $25 to $250 depending on how much you invest): 426324641428874

So there you have it, my experience diving into DIY investing!

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