sportyrichmd Posted July 4, 2020 Author Report Share Posted July 4, 2020 On 7/3/2020 at 1:39 PM, ZBL said: I’ll suggest a bit of a different idea. Instead of maxing out the TFSA, why not put in an amount you would be comfortable losing. If your education and living aspect is all taken care of, and it won’t affect any student loans or anything, then put a small amount in the TFSA, 5K, 10K, 20K etc - whatever you would be comfortable with should it go POOF, gone. Here’s why I say that: Investing is hard. It’s not as easy as read a book then put money in this stable ETF or mutual fund and sit back and relax for most people. You can read all the books in the world on investing, assessing company value, how to balance a portfolio etc but no resource in the world will teach you how to control yourself and your discipline if something suddenly tanks, or if it suddenly rockets, or if the entire market falls, or if that YOLO out of the money call just looks too good to pass up. Like medicine, investing is more about experience than simply reading how to do it. Also like medicine, you need to have a bit of a game plan going in and a bit of an algorithmic approach should things get crazy. In a market as volatile as ours is now, you can gain A LOT of experience in a short amount of time compared to say 2010-2019 where the only market direction was up. Therefore, I think using a small portion of the TFSA to practice investing is wise - better to do that now and make your mistakes with money you won’t miss compared to down the road when you are playing with staff-size dollars. Of course, the likelihood of your investment going to zero is probably near zero as long as you aren’t just straight up gambling on ridiculous calls or penny stocks. Hey! Thanks for the suggestion! That is what my revised plan is: to first invest 5K (I have a bit in savings), see how I deal with that, and then based on how I deal do my future steps. Thank you Quote Link to comment Share on other sites More sharing options...
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