Don't let fear get in your way, because it's never too late, or too early, to start investing.
At a time when many Canadians are concerned about their financial future, it's important to remember you don't need to be a financial expert or have millions of dollars to invest to begin your investing journey, according to Alex Lu, a TD Branch Manager in Burnaby, B.C.
"Almost any amount that helps a customer start saving can be the right amount," Lu said.
"At TD, our Personal Bankers are here to help our customers with their financial goals, whether they are to save for a down payment, a vacation, or any other large or small purchase. But before the journey starts, our first job is to understand their unique personal needs and financial circumstances."
This is especially important at a time when many Canadians are more worried about getting through the next year than looking after their long-term investment future.
According to an Ipsos poll conducted in December 2022 on behalf of TD, the majority of Canadians surveyed (59%) did not contribute to their investments in 2022. The uncertain economy and market instability appeared to be influential factors with 56% of respondents agreeing that they're worried about getting through the next year and haven't started thinking about their financial security. Just over 62% of respondents agreed that the market is too risky to invest in right now.
At the same time, roughly 56% of Canadian respondents agreed that it's always important for them to add to their investments.
Starting your investing journey at TD
At TD, an in-branch Personal Banker can help you get started on your investing journey with guaranteed investment certificates (GICs) and mutual funds. A TD Personal Banker can also help you choose these types of investments for your Registered Retirement Savings Plan (RRSP) or Tax-Free Savings Account (TFSA).
However, if you've been thinking about furthering your investment journey by investing in products like stocks and bonds, you could consider handling your investments on your own through a self-directed investment account through TD Direct Investing.
In-branch, Lu and his colleagues focus on GICs and mutual funds.
- GICs offer a guaranteed rate of return over a fixed period of time. To learn more about GICs at TD, please visit TD.com.
- Mutual funds pool money from a number of individual investors and use that money to buy securities – such as stocks and bonds. Mutual funds can be a good option for customers looking to diversify their investments. To learn more about mutual funds at TD, please visit TD.com.
How much money do you need to start investing?
In the current environment, amidst high inflation, increased interest rates and talks of a recession, Lu knows his customers are often concerned that they need a lot of money to start.
But the good news is that customers don’t need a lot of money to begin their investing journey. At TD, one way customers can start setting aside some money for investing, is by setting up automatic transfers from their TD chequing account to a TD savings account. You can also set up automatic transfers to a registered plan, like a TFSA or RRSP, provided you comply with maximum contribution limits that may apply.
"Setting up automatic transfers is one good way to help you build your savings habit," he said
At TD, there are three types of automated savings tools to choose from:
TD Pre-authorized Purchase Plan
- A TD Pre-authorized Purchase Plan lets you automatically invest in TD Mutual Funds on a pre-determined schedule: weekly, biweekly, monthly, quarterly, semi-annually, or annually.
- You can invest as little as $25 per transaction.
- It's free to set up and you can make changes to the amount – and frequency - of your plan whenever you'd like. There are no set-up or change fees for purchases.
TD Pre-authorized Transfer Service
- Automate transfers from your TD chequing account to your TD savings account on a predetermined schedule that works best for you (daily, weekly or monthly).
- There are no set-up fees for this service
- TD will not process a pre-authorized transfer if there isn't enough money in your chequing account to cover it.
TD Simply Save Program
- Save every time you use your TD Access Card for debit purchases or ATM withdrawals, or both
- You can transfer $0.50-$5 per debit or ATM withdrawal transaction (you choose the amount when you set up the program) and the money goes from your TD chequing account to your TD savings account.
- TD will not process a Simply Save transfer if there isn't enough money in your chequing account to cover it.
It's free to set up.
To learn more about automated savings tools at TD, please visit TD.com.
About the TD Survey
Results are based on an Ipsos poll conducted online between December 8 to 16, 2022, on behalf of TD Canada Trust. A sample of 2,001 Canadians aged 18 and over were interviewed online for this survey.