It was July of 2015, on a flight to Calgary while reading Kevin O’Leary’s book ‘Cold Hard Truth On Men, Women and Money’ when I decided to take managing my wealth into my own hands. Up until that point my investments had always been managed through a financial institute where I was paying fees, lots of fees. The money that I was saving and setting aside, was being invested into mutual funds. “A mutual fund is quite simply a collection of stocks, bonds, or other securities owned by a group of investors and managed by a professional investment company” (Chand, 1998). Since a mutual fund is “professionally” managed, they charge a fee for their service, a very high fee. Canada has some of the highest mutual fund fees in the world! Read more about mutual fund fees here, https://www.howtosavemoney.ca/the-price-you-pay-for-mutual-funds. Needless to say I was sick of paying these ridiculous fees for something I could manage myself, and yes you can do it too! I was ready to do whatever I needed to be in full control of my money, and have my money working to it’s fullest potential.
Once I arrived back home I went straight to my nearest TD branch and opened up a self directed brokerage account. A brokerage account gives you access to the different stock exchanges and gives you the ability to buy and sell stocks, bonds, ETFs, mutual funds etc. There are many options for brokerage accounts out there, so make sure you do your research. TD’s platform made the most sense for me.
Once I had my account open and ready to go is when I made my first mistake. I got overly excited and I jumped the gun buying my first stock without doing any research. I had no idea what I was doing and “Risk comes from not knowing what you are doing” Warren Buffett. As it turned out the company I was buying, Walt Disney Company, was pretty overvalued at the time I purchased it. With in a couple weeks the market corrected itself causing the share price to fall significantly, and to this day it still hasn’t recovered, it’s been 3 years!
I learned my lesson that day and decided to better educated myself before buying anything more. I read book after book, listened to podcasts and audible books to and from work every day for almost a year before making my next stock purchase. This is when my portfolio really started to take shape.
R. Chad (1998), Ranga Chand's Getting Started with Mutual Funds, Retrieved from
The information provided is opinion and for informational purposes only. It should not be considered financial advice. We are not your financial planners and have not considered your personal situation or needs. DIY Wealth does not make any guarantee or other promise as to any results that may be obtained from using our content. Your use of the information received is at your own risk.