Canadian Investing and Trading strategies for people
planning to retire with income.
Who is this site for?
For you who are 20 to 65 of age and you have started to think about how retirement will look like. Because, as you know – most of us will live well into our 80s.
If you don’t care what retirement will look like – this might not be information you want to hear. All I wish to do is to share some knowledge gathered during the past 25 years or so. Perhaps sharing what I should have done when I was younger. If you are already retired, your goal should be to preserve capital and generate an income.
Retirement Income Investment Options
First things first…. Investing vs Trading
They are, in my mind two different things.
Investing, in the traditional sense of the term implies long-term growth of capital preferably in a tax free account. So it can compound. For example, a RSSP. If, as a young person you set one up, pick a mutual fund or something and it grows by say 5%/year and the profits are re-invested you will be amazed at how fast it will grow. And you don’t have to do much except contribute hopefully the maximum allowed each year. If you do nothing else, you might have a healthy retirement fund pending on when you start and how much you contribute. Investing can also mean you hire an investment advisor to guide you. This applies if you have a fairly substantial capital to invest, and also consider the fees. Outside of a self-directed RSSP you can open an account with a broker and buy/sell stocks yourself. You pay a fee for each trade. Done right, it can beat the mutual fund rates and produce a steady growth. Done with knowledge, and conservatively it is still considered investing if the goal is to grow capital for retirement. Find a Canadian lender for your loan needs. LoanConnect Review.
Trading implies taking a very active role in the market. You can, for example have a self-directed RSSP and make the trades yourself. Two things: You have to be interested enough to do the research and learn what to do and what NOT to do. And you have to learn money and risk management. Then there is DAY TRADING. The totally opposite of “investing”. Day traders are totally fascinated by the game, and secondary the long-term accumulation of capital. 75% of all day or week traders lose money. This fact alone should tell you it is not for most people. The attraction is that using leverage you can trade larger amounts as opposed to having to pay full price for something. But I can tell you it is fun and very, very challenging. And yes – done right it can be very profitable. But there is a LOT to it.
This site will have information on both.
Investing for Retirement | Retiring in Canada | How to Retire in Canada
Disclaimer: The information in this website is for educational and informational purposes only. The content is not presented by a professional, and therefore the information here should not be considered a substitute for professional advice. Always seek the advice of someone qualified in this field for any questions you may have.