TORONTO, Sept. 8, 2016 /CNW/ –
In an environment where interest rates are low and there is greater volatility in the markets, Millennials have mixed views when it comes to which investing strategy is best. According to a recent survey commissioned by TD, 36 per cent of Millennials don’t know if it’s the right time to invest, while 22 per cent say it’s definitely not the time. Furthermore, one-third (37 per cent) say they do not invest at all.
“Younger Canadians are in the best position to take advantage of the current market environment and long term horizon, and learn how to manage their money independently through self-directed investing,” saidCalvin MacInnis, Senior Vice President of TD Direct Investing. “For a generation with such a strong entrepreneurial spirit, it’s surprising that Millennials are still hesitating to invest; however, we’re already seeing this group begin to embrace self-directed investing as they feel empowered by the online technology, and we expect this popularity will continue to grow.”
In addition to the uncertainty around market timing, there are other misconceptions when it comes to self-directed investing. For Millennials who do not engage in self-directed investing, the key reasons cited include lack of money (46 per cent), lack of financial knowledge (40 per cent) and confusion with navigating tools (24 per cent).
To help overcome the perceived barriers associated with self-directed investing, TD Direct Investing offers the following “ABC Tips” to help Millennials invest on their own.
Act Now: When it comes to starting to save for the future, no amount is too small. However, nearly half (46 per cent) of Canadian Millennials surveyed who don’t currently participate in self-directed investing admit that it’s because they don’t believe they have enough money. Nonetheless the first step to investing is simply to start, regardless of how much capital you have. With time on your side, a long investment horizon can help mitigate the risks of market volatility, and you also reap the benefit of compound growth and the prospect of multiplying returns.
Brush Up On Basics: 40 per cent of Canadian Millennials surveyed who don’t invest on their own feel they don’t have the financial background or knowledge. However, you don’t have to be a stock-picking guru to get started – you simply need to look in the right place. TD Direct Investing’s WebBroker platform, for example, features a range of videos, webinars and seminars to help new and seasoned investors make informed decisions when managing their portfolios. You can also keep informed and engaged on timely topics and trends using Twitter, such as by following@TD_DirectInvest.
Choose Your Own Adventure: When it comes to investing, there are many benefits to being in the driver’s seat and steering the direction of your financial future. However, despite having easy access to technology, nearly one quarter (24 per cent) of Canadian Millennials surveyed who don’t participate in self-directed investing think it’s confusing to navigate online investing technologies. Look for a platform that is user-friendly, intuitive and includes educational resources to help get you started, especially when you’re looking to place your first trade.
“There are many benefits to self-directed investing and we know that our clients like the control of managing their own investment decisions,” says MacInnis. “Not only is a platform like WebBroker fast and flexible, but the quickly evolving technology provides more options and better convenience. We’ve recently made some key changes to our platform, focusing on innovation to deliver enhanced features and a superior user experience, helping investors reach their financial goals.”
To learn more about TD Direct Investing, please visit tddirectinvesting.ca.
About the TD Debunking Direct Investing Myths Survey
TD Bank Group commissioned Environics Research Group to conduct a custom survey of 6,337 Canadians aged 18 and older. Responses were collected between February 25 and March 17, 2016. Canadians and a subgroup of 1,753 Millennials, 955 of which who do not participate in self-directed investing are included in this report.
About TD Direct Investing
TD Direct Investing is a division of TD Waterhouse Canada Inc., a subsidiary of The Toronto-Dominion Bank.
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 and serves approximately 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 also ranks among the world’s leading online financial services firms, with approximately 10.8 million active online and mobile customers. TD hadCDN$1.2 trillion in assets on July 31, 2016. The Toronto-Dominion Bank trades under the symbol “TD” on the Toronto and New York Stock Exchanges.
SOURCE: TD Bank Group
For further information: Ana Aujla, TD Bank Group, 416-542-0211, Ana.Aujla@td.com; Faye Anderson, Hill+Knowlton Strategies, 416-413-4562, Faye.Anderson@hkstrategies.ca