this post was submitted on 04 Apr 2025
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cross-posted from: https://programming.dev/post/28035609

From my reading so far I'm looking at ETFs with WS, and that I should start with the TFSA. Am I on the right track and what do you recommend?

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[–] [email protected] 5 points 3 days ago* (last edited 3 days ago) (2 children)

Depends on how worried you are and how safe or risky you want to play it given the world's uncertainty.

Contribute to your TFSA what you can afford to (within your contribution limit). If you are super risk averse but want to lend money to Canadian banks at a better rate than savings accounts, a GIC (guaranteed investment certificate) would probably be the best choice, aka term deposit. Returns are lower but aside from the time to maturity there's no downside risk.

Passive index funds are on the whole relatively low risk (in a line must go up world, anyway). If you want a TSX index run by a Canadian bank rather than Blackrock you could look at ticker symbol TTF (TD), or ZCN (BMO). There are probably various fund companies that are Canadian but I just haven't researched it.

But whatever you do (aside from insane Baysteeetbets type of gambling on the market), the important thing is that you are starting to save early. That is excellent, when you're starting out that's more crucial than whether your investment yields 4.5% or 5% in a year.

[–] [email protected] 2 points 3 days ago (1 children)

Seconding GICs. I think market uncertainty is pretty much at peak right now, and there are a lot of GIC options that trade between guarantee and potential -- but the closest they come to "risk" is having the money locked in for some period. Short of civilization collapsing, your money will grow.

[–] [email protected] 1 points 3 days ago

Short of civilization collapsing, your money will grow.

Exactly, this is how I get over the what-ifs and worry related to risk as someone more averse to it. If I lose 50% of what are supposed to be my stable investments, I probably have other bigger problems to deal with than my investments.