You recently started a career,  cash is flowing in, and you want to venture into the world of investing.  Or maybe you’ve always done well financially and realized that you like your job, but it’s not something you want to do forever.  If that sounds anything like you, then it’s probably a good time to start investing.

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The internet is littered with financial information and I know that it’s a bit overwhelming to read through the articles and videos.  Since I get asked a lot about investments, I’ve decided to put together a small section on my site for the strategy I follow.  There’s no point of re-inventing the wheel, so you’ll find a lot of links to allow you to peruse through additional information.

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My investment strategy is very simple and is ideal for a Canadian who generates most of their income as an employee.  There are primarily 3 platforms that falls under my investment umbrella, and they are Index ETFs, RRSP & TFSA.  Most of my information comes from “Canadian Couch Potato” and “boomerandecho.com”.

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Before you can get started with investing, here’s a very short to-do list to make sure you are ready to take on something new with your finances.

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• Get rid of all high interest rate debt (credit card, unsecured line of credit).

• Create a budget and stick to it.  Control random and unplanned spending.

• Get caught up with filing your tax returns. 

• Learn most of the stock investment terminologies & products.

• Below is a general guideline on what you can invest in to grow your wealth from 0 to 100k+. 

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1.  Open and RBC Investment Practice account.  
    

   • You will start with 100k (of fake money) and you can place orders using the real world prices.  This is an excellent way to learn how to place orders and navigate their DIY investing platform.
     
      

2. You have $0 - $10,000  to invest.  
    

   • Open a “Wealth Simple” Investment account TFSA and / or  RRSP account.

   • Put away at least 10% of your gross income (before taxes)

   • Do you plan to buy a home?  If yes, then stick to RRSP for now.  
     
      

3. You have $10,000 - $50,000 to invest.  
    

   • Open a “TD E Series” Mutual fund TFSA and/or RRSP investment account

   • Do you plan to buy a home or invest in Canadian property?  If yes, you should have at least $35k in RRSP.  The “Home Buyer’s Plan” will allow you to withdraw up to $35k in RRSP without any tax deductions.

   • Consider making a plan to purchase property, find an investment partner if you need to.
     
      

4. You have $50,000 - $100,000 to invest.  
    

   • At this point, it’s a good idea to transition away from mutual funds.  If you plan to make lump sum investments with less frequency, it’s a good idea to get index ETFs 

   • Figure out a long term financial plan.  This will determine whether RRSP, TFSA or other types of investments are right for you.
     
      

5. You make $95,000+.  This puts you on a higher tax bracket.  
    

   • Consider hiring an “unbiased” financial advisor to help you manage your finances.

   • Consider having other types of investments such as a rental property or a small business.  This will allow you to generate more income and give you the ability to write off some of your business related expenses.

   • Have a clear vision of your future income, 5, 10, 20, 30 years from now.