The Wealthy Sheep

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November 1, 2024

Investment Plan: The Starter Plan

GROWTH PORTFOLIO

1. OPEN A BROKERAGE ACCOUNT

You can open a brokerage account with any bank or investment company. Make sure you have a TFSA and an RRSP brokerage trading account, both have their benefits.
I recommend these brokerages (affiliate links below):

  • WEALTHSIMPLE TRADE (for beginners), coupon code: 0U6ELW
  • QUESTRADE SELF-DIRECTED account for more advanced trading strategies.
  • INTERACTIVE BROKER account (for any level), coupon code: lina247
2. CHOOSE AT LEAST 1 ETF TO BUY EVERY MONTH

ETFs or Exchange Traded Funds are baskets that include a group of stocks within it. They are managed by institutions and are traded on the stock market for anyone to buy/sell. A group of stocks is always less risky than one, owning ETFs are the best strategy for retirement.

Here’s a sample list of ETFs I currently own:

  • VFV.TO (CAD dollars for S&P500)
  • SPLG (USD dollars for S&P500)
  • SCHG (Large cap US market)
  • HXT.TO (Canadian market)
  • GLD (Gold for stability)
  • VEU (USD dollar for International markets, ex-US)

(Stocks that end in “.TO” are part of the Toronto Stock Exchange. The others belong to the U.S. Stock Exchange which are held in an RRSP to avoid taxes). TFSA that hold U.S. stocks/ETF are subject to taxation.

3. Set up an automatic transfer to your brokerage account

Set your brokerage account to automatically deposit cash each month. This will encourage you to invest more frequently. Aim to deposit at least 15% of your pay cheque each month.

4. Buy some ETFs

Each month, buy shares from the list of stocks you chose with the money you transferred. Some brokers have features that automatically sets you up to purchase a certain stock every month.

5. If I had to choose one…
  • I would pick either VFV.TO or SPLG. They have the best overall performance, low management fee with a diverse group of stocks that have grown since the inception of this ETF. Investing $1000 per month will allow you to reach millionaire status in just 23 years.

– The Wealthy Sheep

Filed in: Money, Investing, Retire Early | By The Wealthy Sheep | Leave a Comment

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