DIY Investing – With a Little Help
Forget about me, what did you learn from financial literacy month? Is there something that really stuck with you? Have you decided it’s time to take control of your finances? The one question that I was asked a lot this month was; how did I get over the fear of becoming a do-it-yourself investor? I usually respond with I just educated myself until I was ready, but I realize this isn’t the answer for everyone.
I was screwed by my old financial advisor and that was the kick in the butt I needed to go DIY. I wanted to manage things myself since no one would care more about my money than me. It worked out for me since I’m not really an emotional investor, but I admit I have made mistakes along the way.
Many people want to get into DIY investing, but are still intimidated by the process. Don’t worry there’s nothing wrong with enlisting some help since the whole point is to reduce your fees, and to keep your investments simple.
Tangerine Investment Funds
As many people here know, I’m an index investor and I use the couch potato strategy. This method works for me because I’m disciplined and I don’t mind taking 5 minutes of my time every year to re-balance. If you want absolutely nothing to do with your investments then the Tangerine Investment Funds are for you.
The Tangerine investment funds are index mutual funds. You pay a higher management expense ratio of 1.07% compared to (.20 – .50%) if you did it yourself, but what you get is convenience. The difference in MER can be significant, but it doesn’t take away the fact that these funds are great since it requires zero effort from the investor. Simply deposit your money on a regular basis and Tangerine will take care of the rest.
There are only 4 portfolios available and which one you’re recommended is based on your risk profile.
- Tangerine Balanced Income Portfolio
- Tangerine Balanced Portfolio
- Tangerine Balanced Growth Portfolio
- Tangerine Equity Growth Portfolio
Even at 1.07%, there’s a lot of value here for investors who want to index without having to worry about maintenance.