Getting Started with Investing

Tax-advantaged accounts first

Before choosing what to invest in, most Canadians benefit from choosing where to hold it. These registered accounts are available to any resident who qualifies:

TFSA — Tax-Free Savings Account

Contributions aren't tax-deductible, but growth and withdrawals are completely tax-free. Room accumulates yearly from age 18. Good default for most goals since withdrawals don't affect other tax credits or benefits.

RRSP — Registered Retirement Savings Plan

Contributions are tax-deductible against your income now; withdrawals are taxed later, typically in retirement when your income (and tax rate) may be lower. Contribution room is based on prior years' earned income.

FHSA — First Home Savings Account

For first-time home buyers: contributions are tax-deductible like an RRSP, and qualifying withdrawals toward a first home are tax-free like a TFSA. $8,000/year, $40,000 lifetime limit.

RESP — Registered Education Savings Plan

For a child's post-secondary education. The federal government adds a 20% grant (CESG) on top of contributions, up to annual and lifetime limits.

General principles worth knowing

• Build an emergency fund first. Most guidance suggests 3–6 months of expenses in an easily-accessible account before investing for the long term.
• Diversification lowers risk. Broad-market index funds and ETFs spread your money across hundreds or thousands of companies instead of betting on one.
• Fees compound too. A fund's MER (management expense ratio) is charged every year and quietly erodes returns — it's one of the few things about future performance you can actually know in advance.
• Time horizon shapes risk tolerance. Money needed within a few years generally carries less market risk than money that won't be touched for decades.
• Past performance isn't a promise. No app, article, or advisor can guarantee future returns.

Where to go from here

This page intentionally doesn't recommend specific stocks, funds, or "where to invest" — that depends on your income, goals, timeline, and risk tolerance, and a generic app is a poor substitute for advice tailored to your situation. For guidance that accounts for your specifics, consider:

• A fee-only or fee-for-service Certified Financial Planner (CFP), who doesn't earn commission on what they recommend.
• GetSmarterAboutMoney.ca — free, independent investor education from Ontario's securities regulator.
• Canada.ca — Savings and investments for official program rules (TFSA/RRSP/FHSA/RESP limits, etc.).
• Financial Consumer Agency of Canada for how to find and vet a licensed advisor.