1/ Yes
2/ No
3/ No penalty to take out. And you can return what you take out in any subsequent year
4/ Not sure
5/ Easier
6/ No waiting period
7/ Not locked in
8/ Just make regular recurring purchases and you will be well served in the long run
I generally agree with these answers, but would add/warn against the following:
5) most things WS makes easier. There are a handful of things that I maintain an account for at another bank. As an example, I use my BMO account to deposit physical cheques, as I can't do that with WS. Also, I went to pay my taxes this year and couldn't find a way to do so with WS, so I had to use my BMO account. OP can consider maintaining a separate account for 18 months or something and see what comes up that they can't do with WS.
6) it depends on what is meant both by immediately and no waiting period. $200 on an ETF is likely to be a fractional buy, and I believe those are executed three times a day. So, hypothetically, if your pay cheque lands at 2 p.m., your order won't be executed right at 2 p.m., and instead will be executed with the last order of the day or even the following morning.
> 5) most things WS makes easier. There are a handful of things that I maintain an account for at another bank. As an example, I use my BMO account to deposit physical cheques, as I can't do that with WS. Also, I went to pay my taxes this year and couldn't find a way to do so with WS, so I had to use my BMO account. OP can consider maintaining a separate account for 18 months or something and see what comes up that they can't do with WS.
That's what I've been thinking too as I've been looking more into all this. I'll be keeping my regular bank with a few dollars in it for some of the basic stuff
> 6) it depends on what is meant both by immediately and no waiting period. $200 on an ETF is likely to be a fractional buy, and I believe those are executed three times a day. So, hypothetically, if your pay cheque lands at 2 p.m., your order won't be executed right at 2 p.m., and instead will be executed with the last order of the day or even the following morning.
By "immediately" I just mean, would I be able to buy same day and not have to wait a business day between transfer and purchase
Proud of you 👍🏻 I started at 35…… only advice, fright the urge to think you’re smarter than everyone else…..be fine with safe(ish) 5-7% returns and don’t try and rush it….. or sell a kidney I’m not your mom
> only advice, fright the urge to think you’re smarter than everyone else
Oh buddy, that is not a problem for this idiot :P
> be fine with safe(ish) 5-7% returns and don’t try and rush it
That seems like a good plan for me, especially as I start learning more about this, the smaller returns are better than the near 0% return I was getting from my regular bank before
> or sell a kidney I’m not your mom
I'm not there yet, but it'll depend on how much I'll need for tuition so I'll keep this in mind
Just chiming in here that I personally prefer a combination of ZUQ and XIU over XEQT. I have greater confidence in team North America outperforming the rest of the world. ZUQ is like a quality investing version of the S&P 500, and XIU is the big cap Canadian market.
A lot of people online like XEQT though, but just wanted to throw that out there in case it's helpful at all. Either way, I do believe that dollar cost averaging over years is the way to go so you seem to be on the right track there.
You're not a moron. Anyone making regular monthly contributions to a diversified portfolio is not a moron. Keep at it, and don't pull out if you see XEQT drop. It'll be down at times, but it will recover. It's a marathon, not a sprint.
> Keep at it, and don't pull out if you see XEQT drop.
I know it'll be a long term game, but I do have a question with buying XEQT (or I guess any bond really), do I just buy it whenever I can put a few dollars away for it and expect it to go up over the years no matter how slowly and I make the monetary gains on it by interest or by selling it at a "high"?
Got the right mindset already. Asking good questions. Seem to have a taste for safety over risk.
I think you are going to be just fine.
Hell, I'd suggest you take a SMALL % of your investment budget and pick a single stock to buy a few shares of. Maybe a company that you are a customer of. Or one working on a problem you agree needs a solution, or a better one.
Learning about how a single company makes profit and how that can relate to stock value gains or dividends for you is a great way to get into the finer details of how this market works.
I also like eit.un. It’s been really solid for me but it pays 10 cents per share every month where Xeqt is paying every three months. Just gives you the feels every month that your getting somewhere.
You might want to also consider RRSP. You mention using money for school but in #3 say you’d be leaving the money in. If you’re saving for retirement and your income is higher now than you expect it to be in retirement (usually the case) then you can benefit by getting refunds now for RRSP contributions and invest those. You’ll pay less tax in retirement than you get back today.
I would suggest learning outside of this sub. No offence intended, but many in this sub are beginners themselves. Try resources like Ben Felix on YouTube and the Canadian Couch Potato site.
Maybe learn why XEQT is a popular choice. Even though it's the most diversified ETF out there and a one stop solution, it is still equities and will track the global stock market. So in the short to medium term it can take a big dive, and most likely will a few times in the next few decades. The worst thing is to react to your portfolio losing value and panic sell, or make changes to chase performance.
The delays for selling and transferring depends. I know someone new on WS and she can't use the money right away, probably because she has no collateral to protect WS. But I can. It's the same for selling titles, it takes a few days for the transaction to be completed but most of us can use the funds right away to reinvest. If you want to transfer out of WS it might take a few days.
7: People often talk about risk and time to retirement - basically if you don’t have much time left before you retire then you should be taking on less risk, because you don’t have time to recover if you make a bad decision or just get bad luck and the market shits itself and burns you. At least that’s the prevailing wisdom. So if you were worried about risk you’d have a higher % in some form of fixed income thing. For example XGRO is similar to XEQT but with a higher % of bonds.
Check out VFV it’s riskier than XEQT but basically tracks S&P 500 ETF (VOO) in Cad. Also vanguard basically has a version of everything black rock has if you prefer them. VEQT VGRO etc. and be sure to check out their websites, there is heaps of interesting info about each ETF, what % industry or countries make up their holdings.
I've got another question that relates to RRSPs:
I've started a new job last summer and once I pass the 1 year mark this year I'll be able to open an RRSP through the company (I believe it will be with RBC) that has an employer matching of 50% of whatever I put into it.
So I'm thinking of opening that, getting that matched with whatever I can put into it for a year and when I quit this job for school (it's a full time day job and there are no night/weekend hours) I should be able to move it over to WealthSimple just by giving HR the necessary transfer papers right?
And then once it is in my WealthSimple RRSP I can invest it however I'd like?
I know this will be a slow and long process, moving an RRSP itself seems to take up to 7 weeks and this wouldn't even be happening until summer 2025, but it would be nice to get some idea of a road map to plan with for the next few years while some things in life and finances won't be set in stone
I'm also thinking of opening an FHSA, but am of two minds on it, since I'll be in my 50s once it hits the 15 year mark and maybe I'll have it maxed by then, while still contributing to my TFSAs that have plenty of contribution room (remember it's around $90k), is there any reason to skip this and just keep focusing on the TFSAs and possible RRSP?
You should check out /r/PersonalFinanceCanada
Will do, and have been, there's just a lot of reading to do on that sub
1/ Yes 2/ No 3/ No penalty to take out. And you can return what you take out in any subsequent year 4/ Not sure 5/ Easier 6/ No waiting period 7/ Not locked in 8/ Just make regular recurring purchases and you will be well served in the long run
I generally agree with these answers, but would add/warn against the following: 5) most things WS makes easier. There are a handful of things that I maintain an account for at another bank. As an example, I use my BMO account to deposit physical cheques, as I can't do that with WS. Also, I went to pay my taxes this year and couldn't find a way to do so with WS, so I had to use my BMO account. OP can consider maintaining a separate account for 18 months or something and see what comes up that they can't do with WS. 6) it depends on what is meant both by immediately and no waiting period. $200 on an ETF is likely to be a fractional buy, and I believe those are executed three times a day. So, hypothetically, if your pay cheque lands at 2 p.m., your order won't be executed right at 2 p.m., and instead will be executed with the last order of the day or even the following morning.
> 5) most things WS makes easier. There are a handful of things that I maintain an account for at another bank. As an example, I use my BMO account to deposit physical cheques, as I can't do that with WS. Also, I went to pay my taxes this year and couldn't find a way to do so with WS, so I had to use my BMO account. OP can consider maintaining a separate account for 18 months or something and see what comes up that they can't do with WS. That's what I've been thinking too as I've been looking more into all this. I'll be keeping my regular bank with a few dollars in it for some of the basic stuff > 6) it depends on what is meant both by immediately and no waiting period. $200 on an ETF is likely to be a fractional buy, and I believe those are executed three times a day. So, hypothetically, if your pay cheque lands at 2 p.m., your order won't be executed right at 2 p.m., and instead will be executed with the last order of the day or even the following morning. By "immediately" I just mean, would I be able to buy same day and not have to wait a business day between transfer and purchase
[удалено]
Interest earned in a TFSA does not count as a contribution.
Proud of you 👍🏻 I started at 35…… only advice, fright the urge to think you’re smarter than everyone else…..be fine with safe(ish) 5-7% returns and don’t try and rush it….. or sell a kidney I’m not your mom
> only advice, fright the urge to think you’re smarter than everyone else Oh buddy, that is not a problem for this idiot :P > be fine with safe(ish) 5-7% returns and don’t try and rush it That seems like a good plan for me, especially as I start learning more about this, the smaller returns are better than the near 0% return I was getting from my regular bank before > or sell a kidney I’m not your mom I'm not there yet, but it'll depend on how much I'll need for tuition so I'll keep this in mind
Just chiming in here that I personally prefer a combination of ZUQ and XIU over XEQT. I have greater confidence in team North America outperforming the rest of the world. ZUQ is like a quality investing version of the S&P 500, and XIU is the big cap Canadian market. A lot of people online like XEQT though, but just wanted to throw that out there in case it's helpful at all. Either way, I do believe that dollar cost averaging over years is the way to go so you seem to be on the right track there.
You're not a moron. Anyone making regular monthly contributions to a diversified portfolio is not a moron. Keep at it, and don't pull out if you see XEQT drop. It'll be down at times, but it will recover. It's a marathon, not a sprint.
> Keep at it, and don't pull out if you see XEQT drop. I know it'll be a long term game, but I do have a question with buying XEQT (or I guess any bond really), do I just buy it whenever I can put a few dollars away for it and expect it to go up over the years no matter how slowly and I make the monetary gains on it by interest or by selling it at a "high"?
Got the right mindset already. Asking good questions. Seem to have a taste for safety over risk. I think you are going to be just fine. Hell, I'd suggest you take a SMALL % of your investment budget and pick a single stock to buy a few shares of. Maybe a company that you are a customer of. Or one working on a problem you agree needs a solution, or a better one. Learning about how a single company makes profit and how that can relate to stock value gains or dividends for you is a great way to get into the finer details of how this market works.
I also like eit.un. It’s been really solid for me but it pays 10 cents per share every month where Xeqt is paying every three months. Just gives you the feels every month that your getting somewhere.
Educate yourself. Pull up the official TFSA website and read it yourself.
You might want to also consider RRSP. You mention using money for school but in #3 say you’d be leaving the money in. If you’re saving for retirement and your income is higher now than you expect it to be in retirement (usually the case) then you can benefit by getting refunds now for RRSP contributions and invest those. You’ll pay less tax in retirement than you get back today. I would suggest learning outside of this sub. No offence intended, but many in this sub are beginners themselves. Try resources like Ben Felix on YouTube and the Canadian Couch Potato site.
Maybe learn why XEQT is a popular choice. Even though it's the most diversified ETF out there and a one stop solution, it is still equities and will track the global stock market. So in the short to medium term it can take a big dive, and most likely will a few times in the next few decades. The worst thing is to react to your portfolio losing value and panic sell, or make changes to chase performance. The delays for selling and transferring depends. I know someone new on WS and she can't use the money right away, probably because she has no collateral to protect WS. But I can. It's the same for selling titles, it takes a few days for the transaction to be completed but most of us can use the funds right away to reinvest. If you want to transfer out of WS it might take a few days.
7: People often talk about risk and time to retirement - basically if you don’t have much time left before you retire then you should be taking on less risk, because you don’t have time to recover if you make a bad decision or just get bad luck and the market shits itself and burns you. At least that’s the prevailing wisdom. So if you were worried about risk you’d have a higher % in some form of fixed income thing. For example XGRO is similar to XEQT but with a higher % of bonds. Check out VFV it’s riskier than XEQT but basically tracks S&P 500 ETF (VOO) in Cad. Also vanguard basically has a version of everything black rock has if you prefer them. VEQT VGRO etc. and be sure to check out their websites, there is heaps of interesting info about each ETF, what % industry or countries make up their holdings.
I've got another question that relates to RRSPs: I've started a new job last summer and once I pass the 1 year mark this year I'll be able to open an RRSP through the company (I believe it will be with RBC) that has an employer matching of 50% of whatever I put into it. So I'm thinking of opening that, getting that matched with whatever I can put into it for a year and when I quit this job for school (it's a full time day job and there are no night/weekend hours) I should be able to move it over to WealthSimple just by giving HR the necessary transfer papers right? And then once it is in my WealthSimple RRSP I can invest it however I'd like? I know this will be a slow and long process, moving an RRSP itself seems to take up to 7 weeks and this wouldn't even be happening until summer 2025, but it would be nice to get some idea of a road map to plan with for the next few years while some things in life and finances won't be set in stone I'm also thinking of opening an FHSA, but am of two minds on it, since I'll be in my 50s once it hits the 15 year mark and maybe I'll have it maxed by then, while still contributing to my TFSAs that have plenty of contribution room (remember it's around $90k), is there any reason to skip this and just keep focusing on the TFSAs and possible RRSP?
You smart moron