Simple solutions to cut the noise and invest differently this RRSP season
With rising costs of living and financial uncertainty, saving and investing can feel overwhelming. Low-fee, easy-to-use investment options can help Canadians take control of their financial future—no matter where they’re starting from.
With the investment deadline approaching on March 3, many Torontonians are feeling overwhelmed by the options for saving and investing. The rising cost of living has made it feel even harder to set money aside, making the simplest financial decisions feel complicated.
Gaurav Singh, senior vice president of retail banking at Tangerine, notes that despite economic uncertainty and an overwhelming amount of noise around the topic, investing doesn’t have to be complicated and most importantly, we shouldn’t feel discouraged by external factors we cannot control. Investors have more tools and resources than ever to make informed decisions and take control of their financial future, especially with institutions like Tangerine Bank that offer novice-friendly, accessible, low-fee investment options.
How to get started with investing
Now, more than ever, it’s a good time to begin investing. It’s just a matter of getting started and maximizing your time in the market, rather than stressing over timing the market. For those eager to get started, Singh recommends focusing on what you can control: getting clear on your financial goals—whether it’s saving for a vacation, a first home, a child’s education or retirement—and determining how much time you have before you’ll need to use the funds.
Then, consider your risk tolerance. Your age, financial situation and time horizon influence how much risk you can take on: younger investors, those who won’t need to use their money for years or decades, and those who know they won’t need to access their funds in an emergency, can take on more risk. Personal comfort level is also an important factor.
Another key to smart investing: Simplicity and low fees
“Smart and uncomplicated investing products allow you to take control of your financial future and build your wealth over time,” Singh says.
Tangerine’s investment products are exactly that. In addition to the bank’s much-loved no-monthly-fee chequing account and high-interest savings accounts, the bank has a suite of simple, low-fee investing options that have been empowering clients to reach their financial goals for the last 15 years. Above all, Tangerine’s differentiated approach to investments is working—Tangerine Investment Funds continue to deliver strong results, with three FundGrade A+® Awards in 2024 recognizing Tangerine’s Socially Responsible Investing portfolios.
These investment portfolio options provide global diversification, passive management and a seamless digital experience—all with lower fees than the industry average. Because Tangerine’s portfolios are passively managed, index-tracking funds, investors can benefit from broad market exposure at a lower cost—so more of your money stays invested and has the potential to grow.
A streamlined approach to investing
Rather than overwhelming clients with investing product options, Tangerine offers a simplified collection of funds, including:
- Five core portfolios
- Four global exchange-traded fund (ETF) portfolios
- Four socially responsible investing (SRI) portfolios
- One money market fund
“The bank has prioritized simplifying its online banking experience in recent years to allow clients to easily set up personalized goals and track their progress through the app,” Singh says. “We also have investment advisors who are eager to lend a hand along the way.”
Staying the course in an unpredictable market
It’s also okay to start small with saving and investing. “One of the biggest misconceptions is that you need a large sum of money to begin. In reality, you can start with as little as $25,” Singh says.
With growing economic uncertainty, Singh acknowledges that some people might hesitate to invest. However, he emphasizes the importance of “blocking out the noise” and staying focused on long-term goals.
Regardless of where we are in the economic environment,” says Singh, “it’s most important to focus on time in market over timing the market and starting to invest as soon as possible for the future if you can.”
