You’ve probably heard that investing is one way to build wealth passively, but you do not know how or where to start. For anyone who has never dabbled with investing, it may seem like a very complex endeavor, but it does not have to be.
A couple of years ago, retail investors did not have easy or direct access to financial markets or investment platforms. However, in recent times, the investing process has been simplified. This guide explains the basics of investing and how to get started.
What is investing?
Investing means putting your resources into a venture or product and expecting gains or returns. When it comes to the world of finance, investing is the act of buying financial assets that can appreciate or yield income.
The most common financial assets you can purchase are stocks, bonds, and fixed-income securities. Other non-conventional investment assets are commodities, real estate properties, and crypotcurrency.
Common financial assets
Stocks: Stocks are shares in a company. When you buy a company’s stock, you give that company your money in exchange for ownership of the company. As the company grows and earns profit, you can also make returns through dividends or capital gains —when the share price increases.
For example, assume you purchase a company’s share for $30. If in three months, the share price increases to $35, the value of your share increases. You will have a $5 capital gain when you sell your share.
Stocks are risky assets because a company can go bankrupt, or its share price can decrease.
Bonds and Other Fixed Income Securities: Bonds provide a way for investors to lend companies and governments money in return for interest and the principal after a fixed period.
Fixed income securities are considered relatively safer than stocks or other complex investment assets.
Real Estate: There are various ways to invest in the real estate market. You can buy real properties such as land or houses and sell them at a higher price or earn rental income over time. Real estate investments also include passive assets such as real estate investment trusts, also known as REITs, and real estate funds.
Commodities: Commodities sold on the financial markets include oil, gold, agricultural products, or other precious metals. These assets yield returns when the value you purchased them for increases over time. Like real estate investing, you can invest in real commodities directly or through other financial securities linked to the commodities.
Some financial securities are simple and basic, and others are not. For example, you can invest in exchange-traded funds (ETFs), mutual funds, or index funds. These funds are usually a combination of various stocks, bonds, or other financial securities.
How to invest in the financial markets
Generally, to start investing, you need to buy financial securities through a financial institution or a brokerage.
You can walk into any bank or call a financial institution through the phone to ask about their investing options. Financial institutions give you various investment products and assets to choose from.
When you invest through a bank, you will pay fees to the investment managers who help you buy and sell financial securities and manage your investments.
Investing tip 1: Investing can be risky, and you can lose money. Always research before you buy any financial asset or invest through any financial institution.
You can also invest through an online brokerage. Online brokerages in Canada are TD Direct Investing, National Bank Direct Brokerage, RBC Direct Investing, Wealthsimple, Questrade, and Qtrade. Most online brokerages charge you commissions and fees to buy and sell financial assets such as stocks, bonds, REITs, or ETFs.
Registered investment accounts in Canada
The Canadian government taxes you when you invest and make capital gains or income. However, the government has created savings and investment accounts that allow you to defer or avoid taxes.
You can buy allowable financial assets such as stocks, bonds, mutual funds, and ETFs through these registered accounts.
When you open a tax-free savings account and invest through your plan, your investment earnings are tax-free.
Investing tip 2: Registered investment accounts in Canada have rules and limitations. Learn more about them and comply with the guidelines to avoid penalties and tax implications.
You can use the registered education savings plan to save and invest for post-secondary educational purposes.
Investment risk and returns
Investing involves risks. Risky assets usually have the potential for higher returns, but you also stand a higher chance of losing your money. You need to invest in assets that meet your risk appetite and allow you to achieve your financial goals.
Investing tip 3: Diversifying your investment portfolio helps to manage risks and minimize the impact of financial losses. Diversifying your investment portfolio means you buy different assets or invest across various industries and locations.
Investing can be a wealth-building tool if done right. Ensure you consult a financial expert to help you on your investment journey and get helpful resources on the internet to broaden your investing knowledge.
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.
