Investing Basics in Canada: Beginner Guides and Calculators

These guides cover the foundations of investing in Canada: how to start, how much to put away, what to do with a specific sum or at a specific age, and the calculators that show how money grows. They are grouped by the question they answer.

Getting started

• Investing for beginners in Canada: the accounts, the investment types and the steps to make a first investment
• How to build wealth in Canada: the step-by-step plan from emergency fund and debt to tax-sheltered investing
• How to automate your investments: automatic deposits, auto-invest and robo-advisors
• Investment scams in Canada: common frauds, red flags and how to verify an advisor
• Why is my investment account down?: what a drop in value means and what usually causes it
• How to read an investment account statement: what each section of a brokerage statement shows

How much to invest

• How much should I invest per month?: savings-rate guidelines and how to work out your own target

Investing a specific amount

• How to invest $10,000: options for $1,000 to $10,000
• How to invest $50,000: splitting a larger sum across accounts
• How to invest $100,000: portfolio models, advice costs and taxes at six figures

Calculators

• Compound interest calculator: the formula, compounding frequency and simple vs compound interest
• Investment calculator: portfolio growth with monthly contributions, in nominal and inflation-adjusted dollars
• Rule of 72 calculator: how long money takes to double
• Dollar-cost averaging calculator: regular investing vs a lump sum
• How to calculate ROI: total and annualized return on any investment, with worked examples

Accounts, placement and currency

• Asset location: which investments to hold in a TFSA, RRSP or taxable account, including US stocks
• In-trust accounts: informal trusts for children and how they compare with an RESP
• Currency exchange and your investments: how the USD/CAD rate affects returns and taxes

Comparing safe and growth options

• GIC vs bond ETF vs HISA: where to keep cash and short-term savings
• GIC vs mutual funds: guaranteed returns vs market growth
• Government of Canada bonds: types, T-bills, how to buy them and what replaced Canada Savings Bonds
• How to invest in gold: bullion, ETFs and mining stocks

Elsewhere on the site

Choosing between a TFSA and an RRSP is covered in TFSA vs RRSP for beginners, and a mix of stocks and bonds for each age in asset allocation by age. For funds and platforms, see the ETFs and index funds hub, best all-in-one ETFs, robo-advisors in Canada and the online brokers hub. Buying US shares is covered in how to buy US stocks from Canada, and exchanging money in where to exchange currency in Canada.