Investing for beginners

Looking to start investing? Learn more about how to invest for beginners and find out ways to grow your money through stocks, mutual funds and other investing opportunities.

What is investing?

Investing your money means you are committing money to a financial product, property, or other asset with the objective to earn a financial return. In other words, you’re putting your money to work. Two common registered plans where people place their investments are a registered retirement savings plan (RRSP) and a tax-free savings account (TFSA). A TD personal banker would be happy to talk to you about how to start investing and investing opportunities like how to invest in stocks.

Why should you invest?

People usually invest their money with a specific goal in mind. They’re saving for a home purchase, a vacation, or even longer term, for retirement. These things don’t happen on their own, you have to save up for them. By investing your savings, you’re planning with an objective to get back more money than you put in. If you have savings available, and are interested in learning more about investing opportunities, talk with a TD personal banker to find out more.

What we’re not talking about

If you’re looking for a get-rich-quick scheme, this is not the place. And that’s with a carefully thought-through plan, an assessment of the appropriate level of risk, consideration of your investment timeline, and weighing your investment options - all with the goal of creating a solid investment portfolio that is working to achieve your life goals.

How much should you invest?

There’s no fixed answer to how much you should invest because everyone has their own circumstance. That’s not a cop out, that’s the reality of investing. You can make the best plan in the world, but if you can’t afford it, you may need to switch to Plan B. But don’t worry, it’s all part of the process. The key here is to start. We can’t overstate the power of compound interest. Did you know that $5,000 invested when you’re 25 could grow to over $27,000 by the time you’re 60? (assuming a 5% annual return on investment). How? By letting compound interest, plus earnings on your investments, quietly work away while you’re busy living your life.

How to invest your money in stocks?

This is the question you’ve probably been waiting for. The answer is, there are many ways you can invest in stocks. First, let’s discuss what stocks are. Stocks are equity shares in publicly traded companies. When you buy a stock, you’re buying a little piece of that company. So, it’s important to know something about that company. Stocks can be placed inside your investment portfolio, and can become part of your RRSP or a TFSA. As you can see, things can get complicated pretty quickly. Which is why we strongly recommend speaking with a TD personal banker.

Learn more about stocks

Besides stocks, what else can you invest in?

As discussed above, stocks are pieces of equity (or ownership) in a company. There are also bonds, which are pieces of debt that companies or governments owe. With bonds, you make money on the interest that is paid by the company or government as they repay the debt. An investment portfolio could include a mix of stocks and bonds. Again, we’re thinking longer-term investments. You want your money to grow over time.

Where do you start?

The simple answer is, with a TD personal banker. They’ll discuss investment objectives and ask you questions like, are you looking to grow your money, to generate an income or to keep your original investment safe?

There are a range of investment products that are available to help meet your objectives. An investment timeline plays an important role too. It is important to choose investment products that align with your investment time horizon.

And another important thing a TD personal banker will do is professionally assess your risk profile, which is your comfort level with fluctuations in the value of your investments. Ideally, your investment plan should match your risk profile.

Ready to meet with a TD personal banker? Book an appointment.

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