Sorry, I have to break this to you but a lot of people will never be rich and financially independent. Why? Because they are afraid of learning something that is as easy as learning to ride a bicycle. Many people think investing is something they should do anything to avoid. They may fear the word ‘stocks’ ‘investing’ or think that investing on their own is a very difficult thing to do. Instead of learning how to invest and grow their net worth steadily and slowly, they may rely on their financial advisers to pick biased mutual funds (you are not making yourself rich but only the financial advisers as they get commissions) or put entire money on low interest rate saving accounts that lose its value everyday due to inflation.
Here is great news. Investing is really easy. I personally think it is easier than learning to ride a bicycle. You can be an advanced investor without advanced knowledge and time commitment.
Here is how to invest simply and get great long term results
- Sell all your mutual funds.
- Open brokerage account from any major banks nearby your home. (I have TD waterhouse)
- Buy great low fee ETFs. I recommend US ETFs and stocks in RRSP to avoid withholding taxes. (Disclaimer, I own VTI in RRSP and VCE in TFSA.
- Don’t worry about short term fluctuation, be patient, collect dividend income and watch your investment grow over the long term.
- Save and buy more ETFs with your dividend payments and available funds
- Read great personal finance blogs to learn more Research their methods and strategies. It is not a secret as most of them share their methods in their blogs. A lot of the bloggers would respond to your questions if you have any.
- Apply more advanced skills that you learned from great blogs and purchase stocks directly if you want however if you consider yourself a lazy person and still want to make a great return then keep buying ETFs. Check out Tawcan’s beginner strategy in this link.
- Don’t even think about purchasing mutual funds ever again.
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