When you’re starting to invest, the options can seem overwhelming! However, before you make any decisions, there are some questions you should ask yourself:
- How much do I have to invest? You can start to invest with any amount of money, but some investments may require you to set up an account or get investment advice – which may involve fees.
- How much (if any) can I afford to lose? Not only should you consider how much risk you’re able to take, you need to think about how much risk you’re willing to take – this is your risk tolerance.
- Do I need access to my money? With some investments, you must lock-in your funds for a set period of time (the term). If you need access to your money at all times, these might not be right for you.
- Do I understand the investment I am considering? Above all, it’s important to fully understand how an investment works and what risks are associated with it. For example, is there a chance you’ll lose your whole investment? Ask questions where you invest, and learn about different types of investments on GetSmarterAboutMoney.ca.
You can invest money through an advisor at your bank or financial institution, through a registered financial advisor or an online investment advisor.