As mentioned in an earlier post, we have chosen to use the following methods to fund our retirement:
▪︎RRSPs – Registered Retirement Savings Plan
▪︎Mutual funds
▪︎Premiere plan – a savings / investment account at our credit union

Today, we will share what we know about mutual funds:

What is a mutual fund –
A mutual fund is an open-end professionally managed investment fund that pools money from many investors to purchase stocks, bonds and other securities. 

Mutual Funds (Advantages)
-It allows us to invest in large companies without having to inject large amounts of money. 

-Our money is being managed by a professional who should know what they are doing.

-We can redeem our money quickly, if absolutely necessary.

Mutual Funds (Disadvantages)
-a return rate isn’t guaranteed and the return can fluctuate.

-there are fees associated with managing a mutual fund.

-your confidence in a mutual fund is based on historical data. This does not guarantee that your fund would reap the same rewards.

We have taken all of the above into consideration and decided to give mutual funds a try. Unlike RRSPs and premiere plans, mutual funds are very new to us and we still have a lot of learning to do. We’re excited to see how this goes.

Are you yay 😁 or nay 🙁 for mutual funds?

Our Retirement & Investment Portfolio Part 3

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