February 24, 2013

TFSA/Learning About Investments

For the past couple of years, I've been 'playing' in my TFSA with investments.

Like anything regarding finance, my goal is usually to avoid fees and act rationally. As it turns out, that's the academic consensus as well, which seems to show that paying lower fees, not past performance, is determining factor. I followed a model rather than bothering to understand everything. It basically means that I'll earn/lose whatever the markets gain/lose.

So, I ended up starting a TDW account and investing in eseries funds (no fees for purchasing/selling/account, low fees for the actual funds). ETFs are cheaper, but not for the small amount of money in ETFs, as there are charges for buying/selling.

I'm just now trying to understand what I'm doing. It looks like over the past couple of years, I've earned a money-weighted-return of 16.5% annually. I guess the markets were doing pretty well. (I only did equities... I have bonds/GICs etc outside of the TFSA (in RRSPs).

Posted by JAY at 01:33 PM | Comments (0)