When you’re starting to invest, the options can seem overwhelming! However, before you make any decisions, there are some questions you should ask yourself:
- How much do I have to invest? You can start to invest with any amount of money, but some investments may require you to set up an account or get investment advice – which may involve fees.
- How much (if any) can I afford to lose? Not only should you consider how much risk you’re able to take, you need to think about how much risk you’re willing to take – this is your risk tolerance.
- Do I need access to my money? With some investments, you must lock-in your funds for a set period of time (the term). If you need access to your money at all times, these might not be right for you.
- Do I understand the investment I am considering? Above all, it’s important to fully understand how an investment works and what risks are associated with it. For example, is there a chance you’ll lose your whole investment? Ask questions where you invest, and learn about different types of investments on GetSmarterAboutMoney.ca.