← Back to Hub

Investing Basics: Getting Started

Real investing is genuinely, aggressively boring — and that's the whole point. It's not about finding the next Tesla or calling a market bottom. You buy a tiny slice of the entire economy, set it to auto-repeat every month, and then mostly ignore it for 30 years. If your investing strategy is exciting, something has gone wrong.

Clear These Out First

Opening a brokerage account while carrying 22% credit card debt is a losing trade before you even start — no index fund reliably beats that rate, and the math just doesn't work in your favor. Pay the card off first. Same goes for your emergency fund: without 3–6 months of expenses sitting liquid somewhere boring, you're one layoff away from being forced to sell investments at the exact wrong moment. And if your employer matches RRSP contributions and you're not grabbing the full match yet, that's the only genuinely risk-free 50–100% return that exists. Start there.

The Power of Index Funds and ETFs

For most people—and I mean like 95% of people—low-cost index funds or ETFs are the way to go. Take an S&P 500 index fund: it lets you own a little piece of the 500 biggest companies in America all at once.

• Built-in diversification. If one company tanks, the other 499 pick up the slack. You're not betting on a horse—you're betting on the whole track.
• It cleans itself up. When a company falls out of the top 500, the index automatically kicks them out and swaps in a growing one. You don't lift a finger.

Beware of Fees

When comparing funds, find the "Expense Ratio" — that's what the fund manager skims off the top every single year. Actively managed mutual funds often charge 1–1.5%. A plain S&P 500 index fund like VOO or FXAIX charges around 0.03%. A gap of 1.47% sounds like rounding error. Compounded over 30 years, that difference quietly eats a full third of your final balance. Not a typo. Fees are the one thing you can control completely, so keep them near zero.

Risk Tolerance & Asset Allocation

Your portfolio needs a mix of growth assets (stocks) and safer stuff (bonds). How much of each? Depends mostly on how old you are and when you need the money. If you're 25 and retirement is 40 years away, you can ride out crashes. If you're 58, you probably want less volatility.

Dollar-Cost Averaging vs. Lump Sum

Got a chunk of cash to invest? Statistically, dumping it all in at once wins about two-thirds of the time. But psychologically? Most people can't stomach that. Dollar-Cost Averaging (DCA) is the alternative: invest a fixed amount—say $500—every single month, no matter what the market is doing. Highs, lows, crashes, rallies—you just keep buying. It takes emotion completely out of the picture, and you end up buying more shares when prices are cheap.

Where to Actually Open an Account

Most people understand the theory and then freeze when it's time to actually do something. The account order matters more than people realize. Start with your employer's RRSP — contribute at least enough to capture the full match, because that's the only investment that doubles the moment you make it. After that, open a TFSA at Wealthsimple, Questrade, or TD Direct — all three have $0-minimum accounts and your gains compound completely tax-free. Max that out for the year. Then go back and fill the rest of your RRSP. Only after all of that does a taxable brokerage account make sense.

Once you're in, buy one fund and call it a day. At Wealthsimple that's FXAIX (S&P 500, 0.015%). At Questrade it's VOO (0.03%). Set up automatic monthly purchases and then close the app — daily account-checking is how people make bad decisions.

The Mistakes That Actually Cost People Money

Selling during a crash is far and away the most expensive thing beginner investors do. Every major market drop in history eventually recovered — but the people who sold locked in their losses for good. The correct move when everything is red is to keep buying on schedule, same amount, no drama. It feels awful. It also works.

Market timing is the other one. Even professional fund managers with massive research teams can't do it consistently — studies keep showing this, and it keeps not mattering to overconfident amateurs. If you're buying meme stocks or rotating into whatever sector CNBC is excited about this week, that's not investing, it's closer to gambling. Keep that kind of speculation under 5% of your portfolio if you need to scratch the itch.

And stop checking your balance every day. Watching long-term investments on a short-term clock is a great way to make emotional decisions. Once a quarter is plenty. Some of Wealthsimple's top-performing accounts reportedly belonged to people who literally forgot they had one.

The Only Thing That Actually Matters

Fund selection, app choice, which brokerage — none of it matters much compared to one thing: how long you stay invested. Consistency over decades beats clever picks almost every time. Set up automatic contributions, ignore the financial news cycle, and let compounding do the heavy lifting. If you find yourself obsessing over your portfolio, delete the app. Seriously — the goal is to make this as automatic and forgettable as possible.