You've worked hard to pay off your debt, and you now have a few thousand dollars in savings. But how do you make your savings grow?
You could go to a bank or a financial advisor for advice, but should you? They often cost more than you think, and many of their clients have had bad experiences in the past.
You could learn to invest your savings yourself, but that seems daunting. There's a lot of information to digest, and you're never sure if you're doing it right.
The MoneyGeek membership gives you a third choice. With the tools and information we provide, investing your savings is like following a cookbook to cook a meal.
Members have access to model portfolios that mostly consist of Exchange Traded Funds (ETFs). You can think of ETFs as much cheaper versions of mutual funds that achieve lower costs due to computerized automation. Because of lower costs, ETFs have outperformed mutual funds after fees in the past.
The ETFs in the model portfolios have been handpicked by Dr. Jin Won Choi. A number of different ETF portfolios available to suit different circumstances:
All model portfolios are optimized, which reduces the risk of each portfolio without sacrificing expected returns by finding the smartest way to diversify. To learn more about optimization, please read this article.
Your savings, once invested, don't go up or down gradually. Instead, it zig zags up and down. It's important to understand how risky your investments are, or you can lose sleep and/or make mistakes by acting on emotion.
The Risk Analysis tool assesses the optimistic, pessimistic and disaster scenarios for your portfolio, so you can determine which portfolio would be most suitable for your risk tolerance. The best portfolio is the one that will give you the highest return, without causing you to lose sleep over worry.
The Risk analysis tool is incorporated as part of the Model Portfolio pages.
Which stocks or ETFs should you put in your RRSP? Which other investments should you put in your TFSA?
The answer to these questions may not seem straightforward. To help you with your decision, the Model Portfolio pages incorporate an algorithm that divides your investments among your TFSA, RRSP and fully taxable accounts so as to minimize your taxes.
This tool allows members to determine how much they should save each year to prepare for their retirement. A typical retirement calculator assumes that your investments will rise steadily and predictably. But in reality, stocks and bonds go through good years and bad years.
Although there's no such thing as a 100% risk-free investment, our tool can help you protect against unpleasant surprises. Use our Risk Aware retirement calculator to project possible financial scenarios based on your retirement savings plan.