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Intro to Financial Literacy

Intro to Financial Literacy. Introduction. Money isn’t Everything – but the lack of it is…. How well you take care of the money you make will have a big impact on your life. Introduction. Why learn about money?. Financial Terms. Prime Rate TSX DOW SP500 NASDAQ

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Intro to Financial Literacy

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  1. Intro to Financial Literacy

  2. Introduction

    Money isn’t Everything – but the lack of it is…

    How well you take care of the money you make will have a big impact on your life
  3. Introduction

    Why learn about money?

  4. Financial Terms

    Prime Rate TSX DOW SP500 NASDAQ Conventional / High Ratio Mtg Variable / Fixed rate Mtg CDIC TD Mutual Fund Savings Income Growth GIC RRSP RESP TFSA PLC DRIP ESavings Virtual Banks CSB’s ETF
  5. Introduction

    Money / Investing

    Do I need a lot of money to start investing? What investments are better / right for me? How can I earn higher rates of return on my investments ? Is it possible to earn 20 – 30 %? Are stocks risky ? Learn how to establish & Manage your credit portfolio Improving your credit score
  6. INVESTMENT CATEGORIES SAVINGS INVESTING Savings investments focus on low risk money market instruments such as Treasury Bills, designed to generate interest with a high priority on protecting the value of your initial investment. Low risk / short term. Savings Investment Product examples: Regular Savings Accounts GIC’s / Term Deposits Government of Canada Treasury Bills Money Market Mutual Funds High Interest Savings Accounts Canada Savings Bonds
  7. INVESTMENT CATEGORIES INCOME INVESTING Income investing, aims to pick companies that provide a steady stream of income. Income investments may include income and equity securities. Typically fixed income securities include bonds and or mortgages, however, stocks can also provide a steady income by paying a solid dividend. . Investments are usually low to medium risk. Income Investment Product examples: Blue Chip Dividend Stocks Government of Canada Bonds Corporate Bonds Provincial Bonds Mortgage Mutual Funds Balanced & Income Mutual Funds
  8. INVESTMENT CATEGORIES GROWTH INVESTING Growth investing is an investment approach that focuses on identifying and securing securities that exhibit the potential to increase and grow at a rate above the market or industry average. While this asset class tends to outperform other asset classes, typically growth investing is often associated with long-term investments and have higher risks. Growth Investment Product examples: Blue Chip Dividend Stocks Common Stock Canadian Equity Mutual Funds International Equity Mutual Funds Precious Metals Exchange Traded Funds (XIU, XFN) DRIPS

  9. Understanding Returns / Different Investments

    Savings Income Growth Risk / Return

  10. Understanding Returns / Different Investments

    Rule of 72 Investment 1 Investment 2 Annual 3% (Doubles every 24 yrs) Annual 12% (Doubles every 12yrs)
  11. Lifestages / Investment Mix
  12. Lifestages / Investment Mix What is your ideal Investment Mix? (Savings / Investment / Growth) ? Ideal Investment Mix Savings 10% - 20% Income 20% - 30% Growth 50% - 70%
  13. Investment Accounts Investment Accounts: 1. Non Registered 2. Registered
  14. Investment Strategy – Mutual Funds

  15. Credit

    Credit Score / Credit File Credit Cards Lines of Credit Personal Home Mortgages Conventional v High Ratio Fixed v Variable rate Prime Rate
  16. Introduction Credit Score How do I get a free copy of my Equifax Canada credit file? You may request a free copy of your credit file through one of the options below:1. To order your free credit report by phone, call 1-800-465-71662. To order your free credit report by mail or fax, please fill in this Canadian Credit Report Request Form and forward to National Consumer Relations using the address or fax number listed on the form.
  17. Introduction
  18. SUMMARY / STRATEGIES Use Esavings / High Interest Savings Accounts 10% Rule / Wealthy Barber Use Self Directed Accounts Invest in Index Funds (low cost) Take Advantage of ETF’s Buy stocks through DRIP’s Use TFSA instead of RRSP (low income) Buy Growth Mutual Funds / Portfolios Use Monthly Automatic savings plan (min $25 / month) Apply for a low interest credit card Get a PLC to reduce interest costs Request a copy of your credit score Monitor and maintain a positive credit score
  19. Getting Started What do you do now? / How do you start? Develop your personalized Investment Plan Investment Mix Investment Products (Resource – ‘Personal Financial Plan Steps’ – on the ‘About’ page of financialfit.ca website) - Open Investment Account (Manulife Applications online) - Start Investing with as little as $25/ month
  20. Getting Started Manulife Account Package Mutual Fund Account Application Mutual Fund Tax Free Savings Account Pre Authorized Chequing Plan Requirements for an account / ID Canadian Photo ID SIN # VOID Cheque Form Completion / Setup
  21. Websites DRIP Canadian Stock Transfer https://www.canstockta.com/dividendReinvestment.do Computershare https://www-us.computershare.com/investor/3x/plans/planslist.asp?stype=ocp Credit Equifax http://www.consumer.equifax.ca/home/en_ca
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