The world of investing can be intimidating to Canadians who have limited knowledge on the subject and don’t know where to start.
More than a third of young Canadians questioned in a 2023 survey by financial services provider Co-operators said they believe they don’t know everything they should about their investing options. Only a quarter were confident in their ability to choose investment opportunities that could make them money, the survey found.
Experts say starting with the basics is the best way to build the knowledge and confidence needed to launch an investment portfolio.
Why should I bother investing?
“I would say investing, very simply, is finding ways to make your money work for you,” said Brandon Beavis, a personal finance YouTuber and co-founder of investing app Blossom Social.
“I’ve seen too many people work hard just to save their money ‘under the mattress’ or in a savings account. It’s a huge missed opportunity when you aren’t putting that money in a position to grow.”
By “grow,” Beavis means using your money to invest in assets like stocks, mutual funds, exchange-traded funds and bonds that increase in value over time and can be sold for a greater amount than they were worth when first purchased.
This is especially important given rapid inflation, he said, which causes the value of a dollar to fallover time. For example, the Bank of Canada’s inflation calculator shows an item that cost $100 in 2010 would cost around $134 in 2023, based on an average annual inflation rate of 2.32 per cent — meaning a savings account that had $100 in 2010 would have less purchasing power 13 years later if that money wasn’t saved in a way that allowed it to grow.
Saving without an investment strategy can be especially problematic for young people with specific financial goals, said Brenda Hiscock, a certified financial planner at Objective Financial Partners in Ontario.
“For example, many young people may want to own a home or retire much earlier than people did in the past,” she said, “and in order to accomplish those goals, you really have to apply (investing) strategiesearly so your money keeps up with how much more it will cost to afford these things in the future.”
How should I start investing?
According to Beavis, the most accessible form of investing for young Canadians is the stock market, given the low upfront costs and the ability to “play it safe,” should they wish.
“The way I like to envision a stock is that you are essentially owning a little piece of the actual company,” said Beavis. “By becoming a partial owner of that company, you’re entitled to their earnings and success.”
Through stock exchanges — special markets specifically designed for trading stocks — investors can buy and sell their stocks (also known as shares), where people can earn a profit by selling a stock at a higher price than what they bought it for.
Further, investors who hold onto stocks long enough may regularly receive dividends, the payouts companies give shareholders from the company’s profits.
“The idea is that you should be investing in companies you think will be successful, so as the company grows in value, so does your share in it,” said Beavis.
However, for people who find choosing which companies to invest in too overwhelming, there are several investment options that take away much of the risk that comes with selecting individual stocks: specifically, mutual funds and exchange-traded funds.
These are essentially baskets of stocks, Beavis explained. Rather than picking individual stocks and owning shares in, say, 10 different companies, you can buy into an ETF or mutual fund, which can contain upwards of hundreds or even thousands of different stocks.
Most importantly, added Beavis, is the fact that mutual funds and ETFs are highly diversified — so if one stock in the basket does poorly, it’s unlikely to significantly impact the entire fund, as the other stocks will help offset the decline.
Where do I go to make these investments?
Hiscock suggests young Canadians take the time to think about where and how they’re investing, and to find a platform that both provides them the expertise they need to make sound investments while charging as low fees as possible.
For instance, though robo-advisors and investing apps are very popular among young people due to their low fees and digital-centric platforms, they largely don’t provide the kind of personalized guidance beginners may want (given it’s an algorithmic software program that manages the investments), said Hiscock.
On the other hand, though banks will provide one-on-one guidance, the investment options they offer — including mutual funds — may charge significantly higher management fees.
Hiscock also emphasized that young Canadians should be making an active effort to take advantage of registered accounts, which are investment accounts that receive special tax treatment. In particular, she noted tax-free savings accounts and registered retirement savings plans as the most useful and popular accounts for the average young Canadian.
“The TFSA to me is the first stop on the block where you want to start to apply savings,” she said.
Any growth made through investments in a TFSA is tax-free, and it’s especially useful if one anticipates they may need to take money out of it sooner rather than later as there are no penalties for withdrawals.
“It’s also important to know that there’s a maximum amount of money you can contribute to a TFSA per year, and even if you withdraw money from it, you don’t get that contribution room back until the year after,” added Hiscock.
However, for young Canadians who may have maxed out their TFSA, or who don’t earn a lot of money, Hiscock recommends focusing on RRSPs, as contributions are tax deductible.
“What that means is, say you make $100,000 a year and you contribute $10,000 to your RRSP,” she said, “you’re looking at being taxed on only $90,000 instead of $100,000.”
However, aside from a maximum amount of contribution room allotted per year, Hiscock also cautioned that removing money from an RRSP before retirement can result in hefty penalty taxes — which means it’s especially important that people be secure in their finances before deciding to invest through an RRSP as opposed to a TFSA.
When should I be investing?
Both Beavis and Hiscock expressed the same approach when it comes to investing timelines — start as soon as possible.
“Of course, the first thing that you have to look at as a young person is whether you have high-interest debt. Because if you do, that should be paid down,” said Hiscock.
“Afterwards, you should be looking at savings, and the only way to keep those savings consistently strong is to invest them, and to keep investing regularly.”
For Beavis, starting early also means being able to take slightly bigger risks within one’s comfort zone.
“Typically speaking, the younger you are, the more you can often stomach the ups and downs of the market, because you have a longer time horizon until you need that money to retire and live off of,” he said.
“But in the end, investing should be something you see yourself doing long term, and that requires finding a strategy and (level of risk) that you are comfortable with.”
This report by The Canadian Press was first published Feb. 13, 2024.
Losing a loved one is never easy, and the legal steps that follow can add even more stress to an already difficult time.
For years, families in Vancouver (and Canada in general) have struggled with a complex probate process—filled with paperwork and legal challenges.
Thankfully, recent changes to Canada’s probate laws aim to make this process simpler and easier to navigate.
Let’s unearth how these updates can simplify the process for you and your family.
What is probate?
Probate might sound complicated, but it’s simply the legal process of settling someone’s estate after death.
Here’s how it works.
Validating the will. The court checks if the will is legal and valid.
Appointing an executor. If named in the will, the executor manages the estate. If not, the court appoints someone.
Settling debts and taxes. The executor (and you) pays debts and taxes before anything can be given.
Distributing the estate. Once everything is settled, the executor distributes the remaining assets according to the will or legal rules.
Probate ensures everything is done by the book, giving you peace of mind during a difficult time.
Recent Changes in Canadian Probate Laws
Several updates to probate law in the country are making the process smoother for you and your family.
Here’s a closer look at the fundamental changes that are making a real difference.
1) Virtual witnessing of wills
Now permanent in many provinces, including British Columbia, wills can be signed and witnessed remotely through video calls.
Such a change makes estate planning more accessible, especially for those in remote areas or with limited mobility.
2) Simplified process for small estates
Smaller estates, like those under 25,000 CAD in BC, now have a faster, simplified probate process.
Fewer forms and legal steps mean less hassle for families handling modest estates.
3) Substantial compliance for wills
Courts can now approve wills with minor errors if they reflect the person’s true intentions.
This update prevents unnecessary legal challenges and ensures the deceased’s wishes are respected.
These changes help make probate less stressful and more efficient for you and other families across Canada.
The Probate Process and You: The Role of a Probate Lawyer
(Image: Freepik.com)
Working with a probate lawyer in Vancouver can significantly simplify the probate process, especially given the city’s complex legal landscape.
Here’s how they can help.
Navigating the legal process
Probate lawyers ensure all legal steps are followed, preventing costly mistakes and ensuring the estate is managed properly.
Handling paperwork and deadlines
They manage all the paperwork and court deadlines, taking the burden off of you during this difficult time.
Resolving disputes
If conflicts arise, probate lawyers resolve them, avoiding legal battles.
Providing you peace of mind
With a probate lawyer’s expertise, you can trust that the estate is being handled efficiently and according to the law.
With a skilled probate lawyer, you can ensure the entire process is smooth and stress-free.
Why These Changes Matter
The updates to probate law make a big difference for Canadian families. Here’s why.
Less stress for you. Simplified processes mean you can focus on grieving, not paperwork.
Faster estate settlements. Estates are settled more quickly, so beneficiaries don’t face long delays.
Fewer disputes. Courts can now honor will with minor errors, reducing family conflicts.
Accessible for everyone. Virtual witnessing and easier rules for small estates make probate more accessible for everyone, no matter where you live.
With these changes, probate becomes smoother and more manageable for you and your family.
How to Prepare for the Probate Process
Even with the recent changes, being prepared makes probate smoother. Here are a few steps to help you prepare.
Create a will. Ensure a valid will is in place to avoid complications.
Choose an executor. Pick someone responsible for managing the estate and discuss their role with them.
Organize documents. Keep key financial and legal documents in one place for easy access.
Talk to your family. Have open conversations with your family to prevent future misunderstandings.
Get legal advice. Consult with a probate lawyer to ensure everything is legally sound and up-to-date.
These simple steps make the probate process easier for everyone involved.
Wrapping Up: Making Probate Easier in Vancouver
Recent updates in probate law are simplifying the process for families, from virtual witnessing to easier estate rules. These reforms are designed to ease the burden, helping you focus on what matters—grieving and respecting your dead loved ones’ final wishes.
Despite these changes, it’s best to consult a probate lawyer to ensure you can manage everything properly. Remember, they’re here to help you during this difficult time.
TORONTO – Canada’s main stock index was higher in late-morning trading, helped by strength in energy stocks, while U.S. stock markets also moved up.
The S&P/TSX composite index was up 34.91 points at 23,736.98.
In New York, the Dow Jones industrial average was up 178.05 points at 41,800.13. The S&P 500 index was up 28.38 points at 5,661.47, while the Nasdaq composite was up 133.17 points at 17,725.30.
The Canadian dollar traded for 73.56 cents US compared with 73.57 cents US on Monday.
The November crude oil contract was up 68 cents at US$69.70 per barrel and the October natural gas contract was up three cents at US$2.40 per mmBTU.
The December gold contract was down US$7.80 at US$2,601.10 an ounce and the December copper contract was up a penny at US$4.28 a pound.
This report by The Canadian Press was first published Sept. 17, 2024.
TORONTO – Strength in the base metal and technology sectors helped Canada’s main stock index gain almost 100 points on Friday, while U.S. stock markets climbed to their best week of the year.
“It’s been almost a complete opposite or retracement of what we saw last week,” said Philip Petursson, chief investment strategist at IG Wealth Management.
In New York, the Dow Jones industrial average was up 297.01 points at 41,393.78. The S&P 500 index was up 30.26 points at 5,626.02, while the Nasdaq composite was up 114.30 points at 17,683.98.
The S&P/TSX composite index closed up 93.51 points at 23,568.65.
While last week saw a “healthy” pullback on weaker economic data, this week investors appeared to be buying the dip and hoping the central bank “comes to the rescue,” said Petursson.
Next week, the U.S. Federal Reserve is widely expected to cut its key interest rate for the first time in several years after it significantly hiked it to fight inflation.
But the magnitude of that first cut has been the subject of debate, and the market appears split on whether the cut will be a quarter of a percentage point or a larger half-point reduction.
Petursson thinks it’s clear the smaller cut is coming. Economic data recently hasn’t been great, but it hasn’t been that bad either, he said — and inflation may have come down significantly, but it’s not defeated just yet.
“I think they’re going to be very steady,” he said, with one small cut at each of their three decisions scheduled for the rest of 2024, and more into 2025.
“I don’t think there’s a sense of urgency on the part of the Fed that they have to do something immediately.
A larger cut could also send the wrong message to the markets, added Petursson: that the Fed made a mistake in waiting this long to cut, or that it’s seeing concerning signs in the economy.
It would also be “counter to what they’ve signaled,” he said.
More important than the cut — other than the new tone it sets — will be what Fed chair Jerome Powell has to say, according to Petursson.
“That’s going to be more important than the size of the cut itself,” he said.
In Canada, where the central bank has already cut three times, Petursson expects two more before the year is through.
“Here, the labour situation is worse than what we see in the United States,” he said.
The Canadian dollar traded for 73.61 cents US compared with 73.58 cents US on Thursday.
The October crude oil contract was down 32 cents at US$68.65 per barrel and the October natural gas contract was down five cents at US$2.31 per mmBTU.
The December gold contract was up US$30.10 at US$2,610.70 an ounce and the December copper contract was up four cents US$4.24 a pound.
— With files from The Associated Press
This report by The Canadian Press was first published Sept. 13, 2024.
