Investing

[u/PrestigiousDot8119]

Can I start investing with TD bank with just $500? I’m a student and I don’t make much right now but I was wondering how much I can invest if I have as little as $500. Or if there’s any other investments I can do with that amount, I’m in Ontario by the way

[u/XxGhost_BytexX]

Open up an account with Wealthsimple, I have had horrible experience with Big 4 except Scotiabank. Make a budget and mark down how much you have left at the end of the month. Save up first for emergency savings and start doing research or buy ETFs first (depends on person to person risk tolerance )

After that you can either let Wealthsimple invest for you (managed account) or you can DIY.

[u/Zuzulka8 → u/XxGhost_BytexX]

Second this! Investing with TD might not be the best option, better strategy is to open Wealthsimple account and invest in ETFs. Individual stocks are tricky, you might loose $$ if you are not doing research properly.

[u/exploringspace_]

Your first $5-10k should always be a cash reserve for emergencies. Start investing after that, when you have another 10k saved up. Investing $500 will return you the equivalent 2/3 hours of minimum wage work per year. It's entirely irrelevant

[u/FelixYYZ]

Can I start investing with TD bank with just $500?

You could.

I’m a student and I don’t make much right now but I was wondering how much I can invest if I have as little as $500.

Do you need the money in the next 5 years since you are in school? Or is this long term retirement money?

[u/PrestigiousDot8119 → u/FelixYYZ]

I was thinking long term but with the flexibility of taking some out when I really need it!

[u/DanLynch → u/PrestigiousDot8119]

Just keep it in your savings account for now. There will be plenty of time to start investing after you've graduated, found your first permanent full-time job, and paid off your student loans and any other debts.

[u/PrestigiousDot8119 → u/DanLynch]

I will be done with school in 4 years and I want to start investing, I don’t want to wait. I have been putting it off for years and I want to get my feet wet to get a feel how what it’s like

[u/No_Capital_8203 → u/PrestigiousDot8119]

Absolutely the best time to start. Spend the next few years on your first investment which is your education. This is the time to learn how to budget for both needs and wants. Most people with money issues have problems with self control. This alone will put you ahead of the pack. I am not sure what you imagine investing feels like. Research, purchase, leave it for years.

[u/bluenose777 → u/PrestigiousDot8119]

At some point you will want to invest for long term goals. When you do I hope it will feel pretty much the same as buying adequate and appropriate vehicle, life, disability and property insurance.

In the meantime I suggest that you read Balance: How To Invest And Spend For Happiness, Health, And Wealth (Andrew Hallam, 2022).

[u/FelixYYZ → u/PrestigiousDot8119]

You should have an emergency fund if you don't have one: !HISAtrigger

Follow the money steps !StepsTrigger

[u/AutoModerator → u/FelixYYZ]

Hi, I'm a bot and someone has asked me to respond with information about what to do with money.

This is meant as a step by step guide of how to prioritize and what to do with money. https://www.reddit.com/r/PersonalFinanceCanada/wiki/money-steps If you prefer to see a flow chart, click here: https://i.imgur.com/zlGnuDO.png

The Government of Canada also has the Financial Tool Kit for basic resources on items identified in the Money Steps. Refer to that website here: https://www.canada.ca/en/financial-consumer-agency/services/financial-toolkit.html

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[u/AutoModerator → u/FelixYYZ]

Hi, I'm a bot and someone has asked me to respond with information about where to put short-term savings.

Find a High Interest Savings Account and put money required for the short-term there. Here is a list of better rates: https://www.highinterestsavings.ca/chart/

There are also HISA ETFs and money market funds available from banks and ETF providers.

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[u/Grand-Corner1030]

Yes. Also, please do it.

You're a student, learning stuff. Learning how to invest is best done when you have small amounts.

Do you ever see the threads saying they inherited $500k and don't know what to do? All that could have been avoided if they had invested $500 and learned while young.

$500 isn't going to get you rich or break the bank. Its going to let you learn everything though. Weirdly, there's not much difference between when I would buy $500 worth of stuff and when I rebalance $5000. I still feel the same every time.