SH64: Investing 101 - What to do before you invest, Time Horizon, and Risk Tolerance
Investing often seems like a complex and intimidating field full of finance-bros using 10 monitors to steal your life savings, but once you learn the fundamentals it’s pretty simple to make a plan and meet your long-term goals. You don’t need to check your accounts daily or try to time the market just right. In fact, you’ll probably be much better off if you don’t think about your investments very often.
This episode covers identifying your goals, what you need to do before you start investing, the fundamentals of the economy, determining your time horizon, and picking the right risk level for you and your needs.
Standard Humans is hosted by Aidan Dennehy and Evan.
Shownotes:
Broke Millennial Takes On Investing: A Beginner's Guide to Leveling Up Your Money by Erin Lowry
The Total Money Makeover: Classic Edition: A Proven Plan for Financial Fitness by Dave Ramsey
SURVIVAL ROUND - How to survive 4 weeks on 50€ ($60) by Life of Boris
S&P 500 Index: What It’s for and Why It’s Important in Investing
Micro-Face: The Musical - Planet Money podcast musical
Guaranteed Investment Certificate (GIC)
Financial Advisors: How To Choose & The Cost
Where to Learn More
Wealthsimple Personal Finance 101 - Collection of great articles for understanding the basics of investing for Canadians
“Best Investing Strategies” article by Wealthsimple
Broke Millennial: Stop Scraping By and Get Your Financial Life Together by Erin Lowry - A great book for getting through the pre-investing checklist
The Total Money Makeover: Classic Edition: A Proven Plan for Financial Fitness by Dave Ramsey - Also good for the pre-investing checklist
Broke Millennial Takes On Investing: A Beginner's Guide to Leveling Up Your Money by Erin Lowry - Amazing beginner’s guide to investing
A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing by Burton G Malkiel
The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns by John C. Bogle - Investing advice from the guy who created the first index-fund
How The Economic Machine Works by Ray Dalio - Great video to understand how the economy works
The Financial Diet - Great YouTube channel for general money advice
Graham Stephan - Another great YouTube channel, he gets into riskier investments and more aggressive saving than we cover in the episode, but his stuff on the stock market is pretty good. Especially if you’re looking for context on things that are currently in the news.
What Is Financial Independence, Retire Early? A Beginner’s Guide - article by Time on the FIRE movement
Apps to track your finances
Asset Allocation Quizzes
Example Asset Allocations
Canadian Couch Potato Model Portfolios - Most simple asset allocation strategy I can find
Questrade ETF Portfolios - Scroll down to the asset allocation section to see what they invest in based on different risk profiles
Best SINGLE ETF Portfolio Canada (2022) YouTube Video
The EASY ETF Portfolio! - Index Fund Stock Market Investing YouTube Video
Robo-Advisors
Brokerages (Companies that you can buy stonks through)
ESG Investing Resources
How to invest your money (and not wreck the climate) - Great video by Simon Clark on how to use your investments to make the world a better place and get a great return on investment
Carbon Collective - American climate change Robo-advisor, their overarching strategy is a good template
10 Best Clean Energy ETFs In Canada (Oct 2022): Go Green - Good article on clean tech ETF options for Canadians
Bank.green - Great resource for finding an eco-friendly bank
Tax Advantaged Accounts
Tax-Free First Home Savings Account (FHSA) - New account coming 2023
High-Interest Savings Accounts
Best high-interest savings accounts in Canada 2022 - Moneysense article
Best High-Interest Savings Accounts in Canada - Wealthsimple article
Helpful Tools
Wealthsimple Income Tax Calculator - Quickly calculates how much you will have to pay in tax based on your income level
Portfolio Visualizer Great for comparing the performance of different asset allocations and portfolios