Use your lunch break to exercise. It is recommended that you get at least 150 minutes of moderate-intensity aerobic exercise every week which accounts for working out an only half hour for 5 days a week. That could very well mean the morning after they send out their promotional copy touting a dead penny stock. It is a myth that only beginning stock investors play games and paper trade. In fact, I might go as far as to suggest that investing via higher yielding investments could be the choice of long term growth investors as well as income investors. Lack of understanding is the primary reason why investors panic in an economic downturn. It is easy to panic and sell off a stock at a loss after seeing it drop double digit percentages in just a few days. It was a very significant loss and very depressing. The disadvantage is massive loss due to untimely and unexpected fluctuations in the market. 50,000 unrealised loss sustained during the 2000-2003 bear market that seemed so significant then had paled in comparison. As one sector of the market is doing well, another will be going through a difficult time. The fact is that there are so many methods of saving and no one method suits all.

But these failures are the only things that turn a normal investor into a trader. I think many people regard income investing as something to turn to when they are retired and in the earlier years, are better off going for growth investments. Interest coverage ratio is income before interest and tax divided by the interest expense. If tax liens had been such an amazing enterprise than why is not everybody else in it? So we’ve discussed index funds and the tax free-savings account, but here is where the magic comes together – you can combine them! Ok the other caveat here is “well-known” asset classes, ie dont go and invest in wine or art, jewellery etc, chances are you are likely not to see your money again. These days it seems like everyone is worried about their financial stability, and whether their savings are safe and sound. Once your account is opened, it may take a few days for your funds to be available to trade, then you will be ready to begin investing! Note that there is a minimum holding period of 30 days with e-series, if you sell before the end of this period you will receive a penalty.

One the other hand, if you had 50 units of some e-series for over 3 months and had bought 5 more units last month, you would still be able to sell off 50 units with no penalty. In my article keep it simple I listed a few of my basic rules for successful investing and said I would look at each one in a little more detail. This can be as simple as you wish. You will simply need to explain to the TD representative that you wish to open a TFSA for purchasing Index funds. The slightly more complicated way of doing so will be opening an account with a discount broker and purchasing ETFs (if you haven’t read our post on comparing these two options, click here). The U.S. Index (TDB902) here tracks the S the above paragraph is the secret. It is the cheapest way for youth to get into the market with an opportunity to achieve better returns than fix investments while having much lower variance, risk and work requirement than investing in individual stocks. The answer is easy because the goals are readily apparent – you work so you can provide the necessities for yourself and your family, and earn enough to enjoy a better life. The take away message about balancing is that over a large enough sample size (many years) your allocations will likely not make a huge difference.

Therefore you will have fewer swings on a shorter sample size and at the end will likely experience slightly lower returns (at least this is what has been seen so far). Furthermore, because the swings are lower in an index portfolio (and you are heavily diversified), it is easy to have little emotions towards your investments. Given how highly diversified you are, short-term market swings will have little impacts on your portfolio. This also highlights a benefit of investing in indexes, you are never trying to predict market trends. Great, you now have an account with TD and are ready to begin investing! I have been retired for a little while – well, 5 years now – and rely on the income from my investments to put food on the table and pay the bills. Most financial planners put people into paper assets where the investor does not have control and therefore it is hugely risky to use leverage. Then flooding Facebook with Star Wars photos, intriguing more people to go Changi and then go watch the movies. If you are careful then you can minimize the risks and maximize your rewards. What about Disney, is it then a super investment?