Five financial investing mistakes you may be making—and how to do better

Most Canadians are feeling the squeeze right now, according to a new TD survey that says 65 per cent report high living costs are impacting their financial goals. The same survey found that over a third of Canadians rely on basic savings instead of tax-efficient investment tools like Tax-Free Savings Accounts (TFSAs), Registered Retirement Savings Plans (RRSPs) and First Home Saving Accounts (FHSAs).

Investing isn’t just for the wealthy—it’s for anyone who wants to enjoy the now while helping set themselves up for success later. “Having the right financial support can make a significant difference when it comes to planning for both short- and long-term financial goals,” says Pat Giles, vice-president of saving and investing journey at TD.

We’ve gathered five common investing mistakes to avoid to help Canadians feel more confident about their financial future.

Believing you need a lot of money to start investing

“One of the biggest misconceptions is that you need to have a certain dollar figure to start saving for your financial future,” Giles says. “No amount is too small to start saving or investing.” In fact, according to the survey results, almost a quarter of Canadians wish they had known it’s not necessary to start with a large investment. “What matters more is getting into the habit of saving and sticking to it,” adds Giles. Start with whatever you can, even if it doesn’t seem like much. Consider looking into a preauthorized purchase plan or preauthorized transfers to set up automatic contributions to your investments.

Thinking professional advice is only for high earners

TD’s survey also found that 45 per cent of Canadians don’t feel confident in their investment knowledge, while 48 per cent who feel their long-term investments aren’t set up effectively say they’d be more confident with the support of a professional. “A TD Personal Banker can help guide you through the process, providing clarity, confidence and a solid foundation to help you achieve your financial goals no matter where you are on your journey,” says Giles.

Waiting until you’re older to invest

Younger generations of Canadians are increasingly savvy about their finances and proactive about investing, with the survey showing that nearly seven in 10 Gen Z Canadians report investing consistently on an annual basis, which is the highest rate across all age groups. “It’s really encouraging to see that younger Canadians are seizing the opportunity to invest at this stage in their lives where they may have fewer financial obligations,” Giles says. “Gen Z’s commitment doesn’t end with investing. Almost three in five of them are eager to enhance their financial planning skills to better reach their financial goals.”

Trying to time the market

“A mistake that investors often make is to delay investing because they’re trying to time the market. People always want to know the perfect time to enter the market,” Giles explains. But timing the market is nearly impossible. What’s more important is actually time spent in market. “The more time spent in the market, the more it can help investors reach their financial goals.”

Waiting to define long-term financial goals before investing

There are plenty of reasons to take advantage of different registered plans in Canada to help you save for whatever your goal might be. It’s also okay if your long-term goals aren’t fully defined yet. “TD Personal Bankers are available across the country to offer financial advice and help customers with decisions around money matters, personal finances and investments to help achieve their unique financial goals,” Giles says. “Booking an appointment to understand the different saving vehicles can really set you on a good path to achieving your goals.”

To learn more about the saving and investment options available, book an appointment with a TD Personal Banker.