- One in three say they don't understand the basics of
investing
- Half would like to invest online themselves
- Almost half of Canadians invest with a financial goal in
mind
TORONTO, April 15, 2019 /CNW/ - We live in a digital
world, but according to a recent TD survey, many Canadians are
reluctant to engage in online, do-it-yourself (DIY) investing. Only
one in 10 people feel very comfortable investing on their own, and
just one fifth of Canadians are currently DIY investors, even
though half said they would like to be able to do it themselves
online.
The survey also found that many Canadians feel a high level of
anxiety about investing, saying the idea makes them nervous,
overwhelmed and intimidated. There is also a widespread lack of
knowledge about how to invest or trade online, or where to find
educational resources to help them.
"Most people have financial goals and are interested in
investing, but very few seem to have a high degree of confidence in
their ability to do so," says Paul Clark, President, Direct
Investing and EVP, TD Bank Group. "Our research found that almost
40 per cent of people who don't feel confident have never sought
out resources to learn about personal finance or investing."
Clark says goal setting is an important first step for
individuals to gain the confidence needed to invest online. It ties
financial success to real-life personal and lifestyle aspirations,
and guides clients to adjust their investment approach so that they
can reach the goals they're trying to achieve. "Many investors lack
this clarity, and therefore feel uncertain about their financial
future," he adds.
When asked about their reasons for investing, survey respondents
ranked retirement first (65 per cent), followed by purchasing a new
home (36 per cent), taking a vacation (34 per cent) and buying a
new car (28 per cent). Renovating a current home (25 per cent) and
saving for education (23 per cent) were also listed as important
financial goals.
In order to help Canadians establish a more confident approach
to saving and investing, TD Direct Investing created GoalAssist™: a
free, online, interactive financial planning tool. The tool is
embedded within WebBroker, and helps clients build financial
confidence by providing a goal setting and tracking option,
alongside other relevant, educational tools.
"Direct Investing GoalAssist's innovative design is highly
accessible and easy to use, and it can help investors of all levels
to become more confident when managing finances and planning for
the future," says Clark. "Plus, it's a tool that allows them to
evolve their plan over time, as their financial situation and needs
change."
Clark adds that seeking knowledge about investing and the
markets is key for customers interested in gaining the confidence
to take control of their financial future. In addition, people can
build confidence as a self-directed investor and learn at their own
pace, in their own home, using the multitude of free online
resources that TD provides. For example, TD Direct Investing's free
investor education libraries, among the largest in Canada, include videos, Master Class online
workshops, live webinars and reports.
Regardless of your financial knowledge, TD offers the following
tips to help you become a more confident investor:
- Set goals: Investing makes sense for a variety of
reasons, either short-term (such as a vacation, furniture for your
home or a new car) or long-term (such as for education and
training, starting a business or a comfortable retirement). As your
finances and needs change, your goals may change, too.
- Choose your timeline: Set this along with your
goals. If you think about when you'd like to use the money you've
invested, it will help you establish a plan for how much to invest,
and what types of investments you'll need to get you there.
- Any amount will do: You don't need a lot of money
to start investing. Nearly 30 per cent of Canadians believe you
need more than $1,000 to get started.
Investing even small amounts can have big benefits over
time.
- Start early: You're never too young to have
financial goals, or to start investing to reach them. Don't be
among the two-thirds of Canadians who regret not having started
investing at an earlier age.
- Don't stop: People invest for all sorts of reasons,
and at all stages of their lives. Even if you're investing to have
a comfortable retirement, you'll still need to fund the things you
want to do and buy after you stop working. A long-term investment
strategy can help you do that.
- Educate yourself: Take advantage of free, online
educational resources to learn more about saving, investing and
planning to help you achieve your goals. Statistics show that
people who actively educate themselves are more likely to set
financial goals and to stick to their financial plans.
About the TD Direct Investing GoalAssist Survey
TD
Bank Group commissioned Leger to conduct an online survey of 1,500
Canadians, using Leger's online panel. Responses were collected
between March 20, 2019 and
March 27, 2019. The margin of error
for this survey was +/-2.5%, 19 times out of 20.
About TD Bank Group
The Toronto-Dominion Bank
and its subsidiaries are collectively known as TD Bank Group ("TD"
or the "Bank"). TD is the sixth largest bank in North America
by branches & serves more than 25 million customers in three
key businesses operating in a number of locations in financial
centres around the globe: Canadian Retail, including TD Canada
Trust, TD Auto Finance Canada, TD Wealth (Canada), TD Direct Investing, and TD
Insurance; U.S. Retail, including TD Bank, America's Most
Convenient Bank®, TD Auto Finance U.S., TD Wealth (U.S.), and an
investment in TD Ameritrade; and Wholesale Banking, including TD
Securities. TD ranks among the world's leading online financial
services firms, with more than 12 million active online and mobile
customers. TD had $1.3T in assets on January 31, 2019.
The Toronto-Dominion Bank trades under the symbol "TD" on
the Toronto and New York Stock Exchanges.
SOURCE TD Bank Group