Investing for retirement in Canada is not as easy as it seems.
Yes, you can easily start a RSSP or TFSA and let someone else manage it for you. You will probably get 5-7% annual return in good years, compounded it will do well over many years.
What if you have some capital you wish to self-invest? Could you do better than the experts? Maybe. Maybe not. In my opinion, it has a lot to to with knowledge and research. Sure, if you buy the top S&P500 stocks you could probably match, or even beat the average return. Let’s use 6% as a baseline. If you learn how to research the market, get a trading account, practice money management and a huge dose of discipline you could easily get to 12+% return. Another thing; you absolutely have to be interested in trading/investing yourself. If you find this boring and you try it just to get a better return, you will lose.
My strategy is exactly that. I am fascinated by the whole market thing, and manage my own RSSP account. I have done well the past few years since I took the account over. It has been both time consuming and challenging. My basic strategy is to research the market, filter out the stocks that I am confident has growth potential, and based on charts I tend to wait for a dip and buy in. I also take profits at a certain point. Like 1-3% of capital. Can’t be greedy. Safety first. Preserve capital. I do not buy and hold. That is for the very conservative traders who are in it for the long term. For the most part I am in and out in a matter of weeks, sometimes 4-6 weeks. Then I sell and am ready for the next opportunity. From what I read this is a fairly common strategy but it takes work.
What if you are really interested and want to learn?
Well, there is the hard way and an easier way. This might seem like a commercial, and I guess it is but there is a course out there I believe will save you a whole lot of time. If I look back at the time I have spent learning plus trial and errors I would say that if you are at a stage where you want to fast track your investing skills to improve your return you should consider the SImply Investing Course. Take a look at their 12 Rules of Investing.
A quick review of Simply Investing
The course is all about learning how to invest quickly and easily. From their website: “The online Simply Investing (SI) Course is the fastest and easiest way to obtain financial freedom. Learn the best ways to invest and become a successful dividend investor using proven value investing techniques that are simple to understand and easy to implement.”
No Time to Take the Course?
The Simply Investing (SI) Report is another way to get financial freedom. By subscribing to the report they will do the work for you. Each month Simply Investing analyzes over 240 quality stocks in North America, and apply their 12 Rules of Simply Investing. Then they provide you with a list of the best and safest stocks.
Sounds pretty good to me. Check it out.
(Disclaimer, these are my opinions and experience.)