Do you have to pick just ONE type of investment?
No! You can mix and match as much as you’d like, and you can very easily change this up over time. When you’re just starting out you might choose to begin with a Robo Advisor, then start buying some All-In-One ETFs or individual ETFs that have lower fees when you’re more comfortable. If there’s a stock in particular that you want to buy, you can have most of your money invested in ETFs or through a Robo Advisor and buy a couple of individual stocks on the side. And if you already own Mutual Funds but you want to try out a Robo Advisor buying ETFs before you transfer all of your savings out of Mutual Funds, you can start a new account with a Robo Advisor or with a Direct Investing platform and move more money over when you’re ready.
A lot of people who are just starting out with Do-It-Yourself investing begin with a Robo Advisor account. Many Robo Advisors have no minimums, so you can give it a try with just $10 to get used to the platform. Many people will stay with a Robo Advisor for life, as the small fees may be worth the peace of mind that it will take care of everything for you. But for people who want to lower their fees or be more involved in investing, a Robo Advisor acts as a perfect stepping stone to help them begin to understand how investing works, without taking on any risk of investing in the wrong things. A natural next-step from a Robo Advisor is to open a separate Direct Investing account, add a small amount of money, and start investing in All-In-One ETFs or Individual ETFs. Having most of your money sit safely in a Robo Advisor provides peace of mind while you’re starting to learn how to buy ETFs and invest on your own.
Once you’re comfortable with ETFs, you may decide to take it a step further and start investing in individual stocks, which have no fees. Most long-term investors like to stick with something called Blue Chip stocks, which are simply stable companies that have been around for many years (like the big Canadian banks, internet providers, and energy companies).
