**This is a sponsored post written by me on behalf of RBC InvestEase Inc. All opinions are my own and are based on my own research of the subject matter.
I’ll be honest, I was terrified of investing in my younger years, but I knew that the earlier I started investing, the more money I would have saved. The good news is that it’s never been easier to invest. These days, you can get professional advice at a low cost.
Now before you ask where do you sign up? It’s important to understand the steps to take before you start investing and what to do once you get going.
Before you start investing, I advise that you take the time to educate yourself about the basics of personal finance. I’m not suggesting you need to be the next Warren Buffet, but merely reading a book on personal finance for Canadians will give you a basic foundation to work with so you’ll feel less intimidated when you’re ready to start investing. I personally recommend Worry-Free Money by Shannon Lee Simmons and Stop Over-Thinking Your Money by Preet Banerjee since they are easy reads which will help you feel more confident about your money.
Pick the right strategy
When it comes to investing these days, you have a lot of options, but most beginners tend to choose one of the following:
- Invest in mutual funds with their bank or an investment firm
- Start investing on their own with an online brokerage
- Select a robo-advisor that suits their needs
There’s nothing wrong with any of the three above choices, so you really need to figure out what works best for you.
Mutual funds from a bank or an investment firm can come with high fees while investing on your own may be a bit too intimidating for new investors. Working with a robo-advisor is easily the best solution if you want more of a hands-off approach without paying a lot of fees.
Start with RBC InvestEase
RBC just introduced RBC InvestEase which is their own robo-advisor service where you can set up and fund your account directly from your computer, phone, or tablet. To get started, all you need to do is answer a few questions online to get an instant portfolio recommendation which is based on your risk tolerance, time horizon, and financial goals.
The best thing about RBC InvestEase is that you only need a minimum initial deposit of $1,000 to get automated investment advice and ongoing portfolio management.
As for fees, you’ll pay just 0.50% on your investment balance, plus the management expense ratio (MER) charged by the ETFs inside your portfolio which ranges from 0.10% – 0.17%. In other words, the total management fees you would pay would be no higher than .67% which is well below the average of 2.5% that you would pay if you invested in mutual funds.
Keep calm and carry on
For many new investors, emotions may affect their decisions. It’s really easy to question your choices when your portfolio has decreased in value or when you hear of a stock that you don’t own is rising in value. Acting on your emotions may affect your portfolio returns in a negative way in the long run which is why robo-advisors are gaining so much traction
With RBC InvestEase, all the investment decisions and portfolio rebalancing are done automatically behind the scenes for you by a team of experts. You can monitor your progress and investments through the online dashboard anytime you wish, but there’s really no need to check frequently or to panic whenever you hear about how the markets are doing on the news.
That being said, you’ll always have access to a portfolio advisors who can answer any questions you may have.
Investing doesn’t need to be scary or intimidating with the help of a robo-advisor such as RBC InvestEase. This new online platform allows you to open TFSAs, RRSPs, and non-registered investment accounts while giving you access to expert portfolio managers at a low cost.