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Buy Investments and Hold Them Forever
We recommend that you buy good quality exchange traded funds (ETFs) and stocks, and plan to hold them forever, because of the following factors:
 | Brokerage costs - every time you buy or sell, it costs you money. |
| You usually buy at the higher ask price and sell at the lower bid price. |
| You can't time the market, so don't try. |
| Lessens risk, because you don't follow the herd in buying high (greed) and selling low (fear). |
| For investments in non-registered accounts, you will pay tax on any capital gains. Let your estate pay the tax. |
| Makes life simpler, because it reduces the number of decisions you have to make. |
| Eventually, hopefully, you can just live off the dividends. |
Tax Tips:
If you are selling investments outside of an RRSP or other registered account, make sure you know the tax consequences.
Keep EXCELLENT records so that when your investments are eventually sold, completing the tax return will be a LOT easier!
TaxTips.ca Resources
Tax issues re investing, and tax treatment of different types of investmentsRecommended stocks for inside or outside of your RRSP
Borrowing to invest in stocks and ETFs
Revised: September 20, 2024