Welcome to The MapleMoney Show, the podcast that helps Canadians improve their personal finances to create lasting financial freedom. I’m your host, Tom Drake, the founder of MapleMoney, where I’ve been writing about all things related to personal finance since 2009.
Do you avoid the stock market because you are afraid of having to track individual companies, and know when to get in and out? My guest this week, Mark Seed, tells us how we can get started with a buy and hold investment strategy that will pay dividend income without having to watch the stock market.
Mark tells us why investing only in the Canadian market is so limiting. In fact, it’s difficult to get true diversification, since the bulk of the Canadian market is concentrated on a few major players in the financial and energy industries.
In order to get more diversification, Mark recommends finding ways to add U.S. equities to your portfolio, an approach he takes with his own investments.
Our conversation is wide ranging, as Mark and I touch on everything from ETFs and robo-advisors to the burgeoning Financial Independence, Retire Early (FIRE) movement. Mark explains why, as a dividend investor, he’s a huge fan of ETFs and robo-advisors.
According to Mark, whole market ETFs are becoming an increasingly attractive option, with built in diversification, automatic rebalancing, and fees that are a fraction of what is charged on a traditional equity mutual fund.
We discuss the intersection of fintech and human oversight as it relates to robo-advisors and the many mobile apps that are making investing more accessible than ever. Never before have there been so many tools available to help people invest.
Make your money work harder with our sponsor, Wealthsimple. With a Wealthsimple RRSP, you can get a bigger refund and pay lower fees. When you contribute to an RRSP, you’ll increase your tax savings and be better prepared for the future. MapleMoney readers get $10,000 managed for free when they open a new account or transfer their RRSP to Wealthsimple. Open a Wealthsimple RRSP today!
- The importance of the ‘pay yourself first’ principle
- The buy and hold investment strategy defined
- The makeup of the Canadian market is very different than the U.S.
- The diversification dilemma of investing only in Canada
- How Canadians can add U.S. equities to their portfolio
- Mark gives his take on the burgeoning FIRE movement
- Why whole market ETFs are an attractive option for passive investors
- The intersection of fintech and human oversight in the investment world