Grow your Dough Challenge
Updated: Feb 22, 2019
Last week as I was watching Jeff "WealthHacker" Rose's Youtube video where he issued a challenge to his followers. The challenge is to Invest $1000 and see who would make the most return out of it at the end of the year. It doesn't matter what you invest in. He invested in numerous account; I believe he invested USD 9k in 9 different accounts each with a different strategy. After watching the video, I decided to take on this challenge and open accounts, and see where I end up at the end of the year. Mind you, mine will be a Canadian based challenge, hence the funds are in Canadian dollars and they are into vehicles available in the Great White North.
Here are the accounts that I have opened for the challenge and what my strategy is:
Wealthsimple is a robot advisor, they have their portfolio based on numerous ETFs thus charging minimal fees. The portfolio is based on the risk level that you are willing to stomach. In my case for this specific case, since I wanted to see how the different strategy would work for the next year I chose two different types of portfolio:
A balanced porfolio. The most important feature is that it provides dividends. It is a portfolio designed to provide income, albeit it being reinvested in order to grow it more.
A growth portfolio. This one is more aggressive, it undertakes a lot of risks and is tailored to the ones capable of bearing short term fluctuations. Their growth portfolio has grown by 26.7% (net of fees) since inception until November of last year, so.... not too shabby.
A plain old savings account. Theirs is a 2% savings account, I don't expect much from it.
This is a peer to peer lending website. I have used it, in recent months and find it to be quite easy to navigate, the principle easy to understand. Instead of the bank taking in the interest on the loans they issue, I will be the one collecting; although Lendingloop will be taking a cut from it to the tune of 1.5% of each note. Should there be defaults on the notes, and collections steps are undertaken, it may even go as high as 35%.
I opened a self directed investment account with them. Questrade is a low cost trading platform. It is free to purchase ETFs and the stocks can be purchased up to a maximum of $9.95. I went with a mix of dividend ambassador, growth stocks and ETFs.
In Canada we do not have the same thing as Fundrise in the USA, in order to circumvent that, I have chose a bunch of REITs that I am investing in to the tune of $1k. This also was done into QUESTRADE.