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Hello and welcome! This Padlet page will be diving into the exciting world of investments. The focus will be on three types: stocks, bonds, and mutual funds. By the end of this presentation, you will have a basic understanding of what each of these investment types are, along with their potential benefits and risks.

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A bond is a loan you make to the government or company for a set amount of time. Holding a bond to its maturity date will ensure you get all your money back plus the agreed-upon interest. Bond terms can range from 1 year or less to 30 years. With most bonds, you will receive regular interest payments while you hold a bond at a fixed interest rate that doesn't change. Some bonds have a floating interest rate that can fluctuate up or down over time. Generally, when interest rates go down, bond prices go up. When this occurs you can make money by selling your bond before its maturity.

I chose to include this video because it introduces bonds to beginners and briefly explains how they work within a short amount of time. A piece of information that I found to be useful was that you can sell bonds to other people before their maturity. Bonds seem to be a strategic way to manage risk, raise capital, and generate profitable returns.

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Bonds can’t be purchased on major stock exchanges but you can buy them through a financial institution or a broker. Some key terms that will help you when deciding which bonds are right for you are:

Corporate Rate: The annual interest a bond pays out

Maturity Date: The date when the bond issuer will repay what was initially borrowed

Face Value: The amount the bondholder receives on the maturity date (price you invested into the bond)

Bond Rating: Indicates the financial strength of the bond issuer. Higher ratings equal the safer the bond.

Once you have decided which bond is right for you, you can place an order with your broker or bank. It’s important to note that brokers will likely charge trading fees to buy or sell bonds.

I chose this link because it explains to new investors how to purchase a bond and lists key terms to understand when considering the type of bond that is right for them. One piece of information that I found useful was learning about bond ETF’s. Bonds are a new concept to me and after learning about them through this assignment I will do further research on them to consider if they are a suitable investment for me.

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In Canada, you can buy bonds through your bank or a brokerage account. You can also buy bond ETFs through an online brokerage.

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When purchasing stock in a company you are purchasing part of the company. The stock that is purchased is called a share and represents your part-ownership of that company. Stocks can be purchased through a brokerage on a stock exchange—for example, the Toronto Stock Exchange (TSX) and New York Stock Exchange (NYSE). Investing in stocks can be risky due to price volatility. The two main ways to make money on stocks are through capital gains or dividends. A capital gain is when you sell a stock for a price higher than what you paid for it. A dividend is an amount of money that gets paid out to shareholders typically on a quarterly or monthly basis. The amount of dividends that you receive is determined by the number of shares that you own. Not all stocks pay dividends. The performance of any individual stock is not guaranteed.

I chose this video because it shares what a stock is to new investors and how someone can purchase shares in a stock. I like that it is a short and straight-to-the-point video that covers the basic information about stocks. I like that it is easy to understand and introduces beginners to information that they can expand on by doing their own research.

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Bilaal Dhalech | Personal Finance | Stockmarket | Crypto on Instagram: "Here’s how to invest your first $1000 in 2024. 

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This video is a how-to guide to investing your first $1000 into the stock market. The person in the video suggests 2 ETF’s, 2 dividend stocks and 2 growth stocks to choose for your portfolio and how to split the $1000 into these 6 new positions that you will be starting.

I chose this video because it is an Instagram reel. Reels are made to grab people's attention, get a point across in a short amount of time and create visual interest. BD Investing is a content creator that I have been following for a while.  As always, do your own research and risk management should be completed before investing in any stock. A piece of information that I found useful was that the video shares a list of stock/ETF symbol tickers which, I myself, am invested in. This guide is a great example of how to start investing in the stock market.

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Bilaal Dhalech | Personal Finance | Stockmarket | Crypto on Instagram: "Here’s how to invest your first $1000 in 2024. 2 ETFs , 2 dividend stocks & 2 growth stocks. 6 positions in total. (not financial advice) 

✅VFV/VOO are the same. These are index fund ETFs. They hold the top 500 us companies. Even Warren Buffet will advise you to invest in these. 

✅ HXQ/ QQQ are the Nasdaq ETFs that hold mostly tech stocks like apple google & Tesla. Similar to VFV/VOO but more tech.

✅ Easiest way to start is to simply buy one stock or company you are familiar  with for example Apple stock. Now monitor that stock and see if you’re comfortable with investing. 

If you want to see my portfolio for free click the link in the bio to join Blossom 
#personalfinance #investingforbeginners #stockmarket #finance #dividends #budgeting #savemoney"

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6,983 likes, 206 comments - bdinvestingg on February 5, 2024: "Here’s how to invest your first $1000 in 2024. 2 ETFs , 2 dividend stocks & 2 growth stocks. 6 positions in total. (not financial advice) 

✅VFV/VOO are the same. These are index fund ETFs. They hold the top 500 us companies. Even Warren Buffet will advise you to invest in these. 

✅ HXQ/ QQQ are the Nasdaq ETFs that hold mostly tech stocks like apple google & Tesla. Similar to VFV/VOO but more tech.

✅ Easiest way to start is to simply buy one stock or company you are familiar  with for example Apple stock. Now monitor that stock and see if you’re comfortable with investing. 

If you want to see my portfolio for free click the link in the bio to join Blossom 
#personalfinance #investingforbeginners #stockmarket #finance #dividends #budgeting #savemoney". 

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A post shared by Bilaal Dhalech | Personal Finance | Stockmarket | Crypto (@bdinvestingg)

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A mutual fund is a professionally managed investment fund that pools money from investors to be able to purchase a variety of investments. The portfolio manager is responsible for deciding which investments to hold, when to buy, and when to sell those investments. They essentially take care of all the work for you. This service is not free as you pay for this convenience through management fees and sales charges. Some hold only stocks, others hold only bonds, and some hold both. You put money into a mutual fund by buying units of the fund. Purchasing units of a mutual fund gives you exposure to a wide variety of investments within the fund which may otherwise be too expensive or difficult to manage on their own. You can find a mutual fund’s fees, risk rating and past performance in its Fund Facts which is a document that investment firms are required to give to investors before they decide to purchase a mutual fund.

I chose this video because it is a great introduction to what a mutual fund is and the types of mutual funds you can invest in. One piece of information that I found very useful was learning about the Fund Facts document. Some research to do before purchasing a mutual fund is to look into the fund manager and taking note of both their past performance and the past performance of the fund. You should also research the fees it will cost you such as management fees and other expenses. What I didn’t know is that the fund facts document provides all that information for you which ultimately makes the necessary research more accessible.

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Mutual Funds 101 -  Part 1: What is a mutual fund?

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There are 5 main questions you should consider before investing in a mutual fund:

1. What are the mutual fund's goals?

Make sure the fund’s goals fit with YOUR investment goals

Does it work with your other investments?

Does the fund provide regular income?

2. How risky is the Fund?

Does the fund fit with your level of risk tolerance

How do you react based on price fluctuations?

3. How has the mutual fund performed?

Past performance is not a guarantee of future performance

How consistent has it performed long term?

How has it performed in different market conditions?

4. What are the mutual funds costs?

Consider all costs (management fees, fees when buying or selling units)

5. Who manages the mutual fund?

What kind of education and experience does the portfolio manager have?

How successful have they been?

What is their investment style?

I chose this website because I think, just like any other investment, it is important to do your research and ask questions. With mutual funds, you are putting your hard-earned money and trust into a mutual fund that is run by a fund manager, hoping to see a positive return on investment. Personally, it takes a lot of convincing and trust to make sure my money will be in the right hands. I found this whole website to be useful as I have never invested into a mutual fund before and it contains a lot of helpful information to guide me through my investing journey. These questions are useful so you can get a better understanding of the fund and its performance.

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Questions to ask when buying mutual funds

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A mutual fund can include stocks, bonds, or other funds. Mutual funds can benefit your portfolio, but there are also risks. There are questions to consider asking before you buy.

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In Canada, there are 3 main types of investing accounts available to us; TFSA, RRSP and FHSA. I will be highlighting only 2 (TFSA and RRSP).

Each has their own rules and regulations that are set by the Canadian government. These are all accounts that you can utilize to your advantage to invest/save. Before opening up one of these investment accounts you should check to see what kind of investments you can make through the account, ask about any account fees and shop around firms to compare fees/rates.

TFSA - TAX-FREE SAVINGS ACCOUNT

18 years or older

Contributions not tax deductible

Save or invest with tax-free growth

Contribution limits set by the government of Canada

RRSP - REGISTERED RETIREMENT SAVINGS PLAN

Contributions deductible to help reduce taxes

Save or invest for Retirement

Tax differed growth (pay tax when you make withdrawals)

Contribution room determined by your income

Age 71 either transfer RRSP to RRIF or make lump sum withdrawal

I chose this website because it briefly introduces the types of investment accounts available for Canadian citizens. One piece of information that I found useful was learning which accounts were tax deductible and which accounts were either tax-deferred or tax-free.

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Types of Investments and Types of Accounts

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There are many ways to invest. Your choices will depend on your goals, your timeline and your willingness and ability to accept risk. It’s important to know some basics.Investing puts your money to work to achieve your financial goals. One way is to earn interest on a sum of money you invest. Another way is to make a return by purchasing an investment at a certain price with the goal of selling it later at a higher price. An investment advisor can guide you in choosing the type of investment that best meets your financial goals.Types of Investments

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This website determines your risk tolerance regarding investments through a list of questions which are:

1. What’s your time horizon?

2. Do you have any major purchases coming up soon?

3. How stable is your income?

4. How do you react to a market correction?

5. How do you currently invest?

A conservative investor might lean toward bonds, while an aggressive investor could find more interest in stocks. A moderate investor might have a balanced approach, with a mix of stocks and bonds. Finding the right balance is key to achieving your financial goals while managing risk appropriately.

I chose this website because it asks some great questions to consider before investing. Everyone is different and has different goals and expenses. It’s important to know these things before starting your investment journey so you can build your portfolio around your own goals and risk tolerance. A piece of information that I found useful was to consider how you react to a market correction/volatility. I don’t think many new investors consider this before investing. They end up being afraid to lose their money and panic sell too early while they are down before allowing a chance for potential recovery.

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You may feel comfortable taking risks when investing, but can you afford to take them? Even if volatility doesn't bother you, your circumstances may dictate how much stock exposure you should have.

That's why it's important to take into account both your risk-taking ability and your tolerance for risk before you make one single investment. You can do so by answering the following six questions.

1. What's your time horizon?

How old are you? When will you use your money? These questions are important because they help narrow down your time horizon. The sooner you will need your money, the more conservative your accounts should be. And the further you are from the expected expense (be it retirement or a major investment like buying a house), the more risk you could potentially take on with heavier stock exposure.

2. Do you have any major purchases coming up soon?

When is your next big expenditure? And how big is it? If you have $300,000 in investable assets but plan on using it within the next year for the purchase of a house, the way you invest it will be different than if your next biggest purchase is a car. If you put this money into riskier investments and the stock market experiences a correction, you could have a hard time reaching your goal. For example, if in March 2020 you had the money for purchasing a home invested in large-cap stocks, you would've seen your investments drop by 34% to $198,000 due to fears of COVID-19, and this may have delayed your plans.

3. How stable is your income?

Over the next few years will your income rise, stay the same, or fall? If your income will be reduced and your expenses don't decline proportionately, you could end up supplementing your bills by dipping into your investment accounts. And having more conservative holdings could help you avoid doing this if they end up trading at big losses. If your income will stay the same, then if nothing else has changed your risk tolerances probably won't either, and your asset allocation model will stay the same. And if your income increases and your expenses don't rise considerably as well, you may be able to withstand more risk because your higher income can better support unexpected expenses.

4. How do you react to a market correction?

If there was a significant loss in one of your investments, how would you react? How have you reacted in the past? If a stock you've been eyeing takes a significant hit, does that scare you away, or do you see it as a buying opportunity? Sometimes a great way of telling how comfortable you feel with risk involves looking at your reactions to it. If you typically have nerves of steel when the stock market is turned upside down, your appetite for volatility is probably higher than if you find yourself biting your nails and panicking about losing all your money.

5. How do you currently invest?

How diversified are your holdings? What types of companies do you like investing in? If you have all stocks, you probably feel more comfortable with risk than someone with 50% stocks and 50% bonds. And if you invest in stable companies that pay dividends, you're probably a more conservative investor than someone who buys shares in the newest tech start-up.

Find the right asset allocation model

The way you answer these questions will decide your asset allocation model or the percentage of stocks, bonds, and cash that you hold. If you are extremely averse to risk or unable to take risks because of things like a short time horizon or low liquidity, you'll probably be a more conservative investor and could end up owning mostly bonds. If you are very comfortable with volatility and your circumstances dictate that you can withstand risk, you'll probably be an aggressive investor. Your portfolio could be made up entirely of stocks.

You may also fall somewhere in the middle and be either a moderate or a moderately aggressive investor. A moderate investor lies more on the conservative side but can handle some stock exposure, maybe even up to 50% of their portfolio. A moderately aggressive investor comfortably owns mostly stock but holds some portion of bonds for downside protection.

If you invest too conservatively, the rate of return that you receive may not be enough and your accounts won't grow fast enough. But if you are invested too aggressively, you might find stock market ups and downs nerve-racking and sell out of your investments so you can avoid losses. This could lead to inferior returns. That's why finding your perfect mix of risk and reward is a vital first step in reaching your goals.

This article was written by Diane Mtetwa from The Motley Fool and was legally licensed through the Industry Dive publisher network. Please direct all licensing questions to legal@industrydive.com.

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5 questions to determine your ideal investing strategy

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You may feel comfortable taking risks when investing, but can you afford to take them? Even if volatility doesn't bother you, your circumstances may dictate how much stock exposure you should have.

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Screenshot of yahoo finance's information regarding AAPL Stock

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This is a screenshot I took of the Yahoo finance website showing the Apple stock. On this page, investors can find a lot of information that may be useful when researching or just looking at all aspects involving a specific stock. In this one image, we can see the stock ticker symbol, performance chart for the day, some of this stock information underneath the chart, a brief glimpse at other stock performances on the right and some tabs that share news, watchlist, portfolio and more.

I find this image useful because I think Yahoo Finance is a useful tool for all investors to get the information they need for any stock. One of the most useful pieces of information that this page offers, and that I use very frequently, is the option to view the stock chart from different timelines. Right now it is set to 1 Day but you can see this stocks performance within the span of a month, 3 months, 1 year and all time.

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This is an image of a man called Warren Buffet. He is a businessman and one of the best-known investors in the world. He is known for his investment philosophy and creating a net worth for himself worth $147 billion.

I chose this image because I wanted to incorporate the idea of looking into what other investors do and what advice they give to the public. Looking into successful investors like Warren can help you build an idea of what you may wnat to do with your investing journey. Never depend on just the advice of others and alway do your own research.

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What did you learn about your topic that surprised you the most?

Something I learned while researching my topic is bonds. I knew little to nothing about what they were before. The first time i heard about bonds was through this Money Matters course and I chose this topic in hopes to learn more about this topic. I am currently not invested in any bonds but they are something I will definitely consider as I age and want to lower my risk exposure.

Provide a real-life example of how this topic is relevant or interesting for you.

This topic is fascinating to me because I am an investor. I started my investment journey earlier this year in July and so far has been exciting. I have been learning many new things I didn’t know before through my own reading and experiences but also through Money Matters. I have a TFSA through the app 'Wealth Simple' and manage my portfolio myself. Considering this, I need to be well involved in my financial literacy and news regarding the investments I am making so I can maintain success in my portfolio. I am currently invested in both individual stocks and ETF’s and I’ve started to see my portfolio grow and become profitable. Each week I deposit 10% of my bi-weekly paycheque into stocks and dollar cost average my positions.

If you could pass on your knowledge to a family member or friend, what do you think is the most important thing to pass on?

I would tell them to start investing today. If they have yet to begin to invest, the next best time is to start now. It’s never too late to begin. I would then suggest to open a Tax-Free Savings Account (TFSA) through either a bank or brokerage of their choice. The TFSA name is misleading to many Canadians because this should be used as an investing account instead of a savings account. Then I’d recommend that they start with an amount they are comfortable with and buy ETF’s. I’d recommend an S&P 500 etf such as VFV or ZSP my personal preference is VFV. This should make up about 30% of your portfolio. Then I’d recommend buying an ETF that tracks the performance of the NASDAQ such as XQQ or QQC. This should make up about 20% of your portfolio. Lastly, for diversification, I’d recommend a Canadian BLUE Chip Dividend ETF such as VDY or XEI. Many of the stocks on the TSX are in the Financial and Energy Sectors unlike the S&P 500 this ensures balance in your portfolio. This should make up about 10% of your portfolio. Then I’d recommend choosing a couple of growth stocks such as Tesla, Google, Nvidia and Apple. Everyone should be financially literate. All the necessary resources are available to us all. The last thing I would say is instead of buying the latest sneakers or iPhone, how about buying some stock in Nike or Apple first, or instead of purchasing that daily coffee how about putting that $5 a day into the stock market.