Introduction:
Please watch introduction video showcasing this page and brief overview of topics and learning activities:
- Getting to know Investing and why it’s important? (Topic 1)
When it comes to investing the main objective is building wealth over a long period of time. This is done through different ways like a self-directed trading account or opening an account with your bank or financial institution. Investing is when you put money into financial assets (products) like stocks, bonds, GIC, mutual funds, real estate, or many others. This is done with the intent to get money back (returns) that is compounded (reinvested) back into the same account. Not only that but generally those that start investing will put money into these accounts over time in different periods (weekly, biweekly, monthly, quarterly, and rarely annually). This is done to beat “inflation,” which is a relevant and a hot topic in the present day. It beats inflation by purchasing products at different market values with the latter (returns) outpacing the inflation rate. However, this mindset and concept might not apply to those heading into their older years, like when retirement questions start to come up. But those that are in their early adult life would benefit from account types like a tax-free savings account (TFSA) or a first home savings account (FHSA) as these account types can help you earn money with no income taxes for big purchases down the line.
There are 5 main investing account types in Canada. They are as follows, TFSA, FHSA, Registered Retirement Savings Plan (RRSP), Registered Education Savings Plan (RESP), and Non-registered Account (OPEN). Each account type has a different purpose, they also have different benefits and drawbacks from each other. A easy way to understand them is remembering each of their investing purposes.
Please watch the video below as it is quite in depth and helps elaborate on why investing doesn’t need to be complicated.
- How is it different from a regular savings account? (Topic 2)
Why is an investing account different from a savings account? When it comes to investing the main intent is to grow your wealth overtime, while for saving it is similar to investing as one needs to put in money overtime, but its done with the intent to have an easily accessible stockpile of liquid money (cash), that can be easily withdrawn whenever it is needed. In other words, one is for long term while the other is short term. Additionally, when it comes to a savings account there is minimal to no risk in losing money (in Canada at least) as the financial system here is quite rigorous (careful and attentive) when it comes to banks and their debts. While, in an investing account there is an infinite amount of risk, but those risks can vary greatly from very low to extreme levels.
Lessons:
- TFSA module (Topic 3): https://www.wealthsimple.com/en-ca/accounts/tfsa
- FHSA module (Topic 4): https://www.ratehub.ca/savings-accounts/the-best-first-home-savings-accounts-in-canada
- RRSP module (Topic 5): https://www.scotiabank.com/ca/en/personal/advice-plus/features/posts.your-guide-to-rrsps.html
- RESP module (Topic 6): https://www.investopedia.com/terms/r/resp.asp
- Open module (Topic 7 ): https://www.fidelity.ca/en/investor-education/non-registered-account/
Learning Activities:
Introduction Survey: Start of course. Done using Google Forms link by hand out (if in person).
Reading and Summary: Can pick one module (topic 3-7) to read more extensively on, research, and summarize. Must be between 450-550 words (grace word count of +/- 50 words). Can be submitted by Word Document, PDF file, paper and pen, or WordPress blog. (Hint: Topic 5 would be a good one to cover)
Quiz: Will take place at the end of the course. Done using Google Forms link or by hand out (if in person).
Discussion Board: Will be conducted throughout course in separate Discussion Board website. Looking for a short 150-200 word snippet (grace word count of +/- 50 words) of each learning point contents (Topics 3-7). Can also be handed in by paper and pen.
Conclusion:
- Choosing the right account type and management over time. (Topic 8)
All in all, investing can be really complicated alone, but it doesn’t have to be. Your local banking institutions are all filled with financial advisors that can help you through a multitude of different needs. There are even private companies/financial institutions with more specialized advisors for things outside of investing like accounting, tax-preferred account insights, insurance, or even all of the above. This beginner course is meant for you to figure out what are your needs are right now and what are some investment options you have.
One of my most favorite videos, when I was first going into this industry. It is short and concise, and it builds on our topic of future management. Fidelity is one of the most well-known financial intuitions that provides a wide range of products, and each product is intended to help us (the customer) to build our own wealth. The financial industry is what fuels the economy, but we the people are the ones that drive it up or down.
To do list:
- Read introduction and conclusion Lessons (“Getting to know Investing[…]”, “How is it different […]”, and “Choosing the right […]”)
- Complete Introduction Survey: Intro Survey
- Read the 5 Investing account modules throughout the course.
- Complete Quiz once all topics have been covered: BI101 – Quiz
- Complete Discussion Board posts: TBD