Asked on 29 Jul 2020
It depends on your time horizon and risk appetite and strategy. If you're thinking of setting aside a sum every month, you might want to consider getting an RSP with a broker that invests into ETFs like the S&P500 etc. This strategy is what we call, dollar-cost averaging. Its of course great for beginners since its less intimidating too.
Stocks are great only when you've done your due dilligence and evaluated the fundamentals for the companies. Of course, a certain capital might be required to diversify out your stocks.
If you find yourself completely risk averse, you can opt for a savings/endowment plan with an insurer. There are short term and long term plans available and that will depend on your time horizon and objectives.
Do make sure you've settled your insurance coverage and emergency funds. You should at least have 6 months worth of emergency funds available before you even start investing.
All the best!
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You could - if investing for more than 10-15 years -
choose one of the less riskier things mentioned, and avoid
all the things that are mentioned as bad here:
I think it depends on your situation.
if you have long term horizon but not much time,consider a index.
if you have long term horizon and have time to learn how to invest properly,do individual stocks as they generally give a higher return if you do it correctly.
if short term, maybe can do roboadvisor.
if you not comfortable being in the markets, can get a savings plan.
savings plan also got a lot of savings plan.
if you want emergency fund go for liquidity.
if you just want higher returns for like wedding or a house or something less liquid is ok generally.
can also get government bonds, basically no risk except not very liquid.
This will largely depend on your current priority and goals -- do your research and get a financial assessment to better understand where you can place your extra income. Other points to consider includes your target timeline -- short term or long term returns / expected age to get back the investment, and how do you handle risk. You can send me a message for further questions or concerns. Hope I can help :)
Maybe consider robo advisors or ETF RSP?
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