Updated: Feb 22, 2019
In my quest of financial freedom and awareness, I am not just focused on the entrepreneurial bit. I have come to learn about the different venues for savings and investments. Here are some of the few things I have started doing and what I think of them.
Wealthsimple is, put simply, a robot that is doing all the investing for you. It runs at first a KYC questionnaire (Know Your Client) in order to assess your risk tolerance, and from there on, it makes up a portfolio into which it invests. I would say it works like a mutual fund that would be tailored to you, because it has a stocks, bonds, foreign stocks and all the fun stuff. I personally think it is quite awesome. It has worked wonders thus far. I have different portfolios, I have a balanced portfolio for dividends and I have a more risky one for future growth.
Lending Loop is a peer to peer lending platform. Nothing much to be said about this, you put in money, it is lent to some applicants, which can be business or people. You basically get to be paid the interest that the banks would normally receive.
Savings account. Run of the mill, good 'ol savings account we are all used to. Although I prefer the ones from Tangerine, because as a bank they charge no fees and don't ask for a minimum balance, besides I have banked with them for years.
One thing to keep in mind, all those options can be held into a TFSA, which will shield your gains from taxes. As opposed to popular belief, it isn't just a savings account (well, my belief at the very least). Why they named it like so is beyond me...
RRSPs not much to be said about these, they shield you from taxes, not like the TFSA, which has your income taxed and only the gains are shielded. Their purpose is to save for the future, they can also be held into many forms.
GICs are term deposits. Depending on the amount of time you are willing to hold on to them, the interest rate will increase as the term is longer.
Foreign currency. I think it can be a form of saving as well. Purchased some US dollars when the rate was low, put them into USD GICs with Tangerine and watch the interest go up. When the CAD falls and it one of them is due, I will change into CAD and hold those gains into one of the other options mentioned above.
I am delving into my own trading both in Forex and Stocks. I think it will be a whole other topic, I have learned so much.
Financial responsibility starts with planning for the future and knowing what vehicles works best for oneself.