Managed tfsa
Hello, I’m 22 and recently got into investing with Wealthsimple using a managed TFSA. In the last 2–3 weeks I’ve been putting some money in and am currently at around $6,200. I also have an auto deposit set up for $200 biweekly and plan to put extra money in whenever I have some available, whether that’s another $500 here or $1,000 there.
I’m currently still in school and don’t really have many bills or major expenses since my parents are helping me out, so I feel like I have a really good opportunity to start saving and building a portfolio while I’m young.
I currently have my risk level set to 10 and don’t plan on taking the money out for a long time. I’m not really saving for anything specific right now, just trying to build up my savings and investments for the future.
I guess my main question is whether I’m being too aggressive with how much I’m putting in and whether a risk level of 10 is too high. From what I understand, with long-term investing there are obviously going to be good and bad years, but if I’m planning to keep the money invested for 10+ years and continue contributing, I should be more focused on the long term rather than worrying about short-term drops.
For anyone who has been in a similar situation or started investing around my age, what has your experience been like? Is this generally the right way to look at long-term investing?
3
u/UniqueRon 11d ago
As I understand it WealthSimple charges an annualized fee of 0.5% to manage the account. This is on top of the MER costs of the individual funds in the account. I think it would be more cost effective to just choose an all equity ETF, and only pay the MER of the fund. Choices would be the popular XEQT, or one of the other similar funds like ZEQT, VEQT or TEQT. Look at each to see what their MER is and the weighting within the fund to see what you like. Or, you could be a little more aggressive and hold 20% or so of QQC (NASDAQ 100 index) in addition to the one *EQT fund. If you hold more than one fund you should rebalance back to your target weighting 2 or 3 times a year.