Today Gloria is joined by her friends Jill and Maddy. We talk about investing for the long term. We go over investing basics – asset classes, risk tolerance, and different options for investing. We also discuss our investing strategies and stories. We also get into whether there are gender differences in investing. Canadians, 2021 means $6,000 more in TFSA (tax-free savings account) contribution room! Let’s get this bread!

Key Takeaways

  1. Investing is all about making money while you sleep. You invest your money and then generate passive income through dividends and capital gains when you sell the security. There is an important distinction between saving and investing. When you have your money in a savings account, you’re basically losing money because interest rates are so low and does not keep up with the rate of inflation. Whereas, when you invest – your money is growing at a steady rate (though there is risk involved), historically the stock market as a whole has grown over time.
  2. ETF stands for exchange-traded fund which is typically a collection of securities that track an underlying index. This can be stocks or bonds. Examples are the S&P 500, which is comprised of the 500 largest US companies, or the Agg, which is the Bloomberg Barclays Aggregate Bond Index which is comprised of US government and corporate bonds.
  3. Ways you can invest:
    • Robo advisors – this is ETF based investing, and it’s done automatically for you
    • DIY through a discount brokerage ( or through your bank – you pick stocks or ETFs
    • Mutual funds – an actively managed fund that invests on your behalf, a collection of securities similar to ETFs but are managed actively but a professional
    • GICs – you can buy these through your bank
  4. You are able to find out your TFSA contribution room on your CRA website account

Listen Now!

Sources/Further Reading

Harvard Business Review – When will we see more gender equality in investing?

The CFA Institute – The equality equation: three reasons why the gender investing gap is closing

The New York Times – A trillion-dollar question: why don’t more women run mutual funds

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Tangerine – new accounts get 2.5% interest (first 5 months), use my Orange key: 40411403S1

EQ Bank – all accounts get 1.5% interest, TFSAs get 2.3% interest!

Thanks so much for tuning in!

 

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