Highlights from Siân Canavan’s Masterclass on the 5 Habits of Successful Investing

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Highlights from Siân Canavan’s Masterclass on the 5 Habits of Successful Investing

The Head of RBC InvestEase also shared her advice for navigating inflation and the bear market.

There’s no denying that many Canadians have seen the value of their investments dip over the last few months. Though this can certainly be nerve-wracking, it’s important to remember that market volatility is not only inevitable, but completely normal. In fact, it’s during times of uncertainty when healthy investing habits are especially important. For a sense of clarity, TL Insiders gathered at Ossington’s Tiger of Sweden with wide eyes and open ears for an informative financial masterclass on July 6. Led by Siân Canavan, Head of RBC InvestEase, guests were guided through the 5 habits of successful investing.

Know yourself
According to Canavan, all strong investing begins with understanding your goals, fears, and how comfortable you are in making your own investing decisions. “The cycle of investing does not begin with asking what I should buy, but first addressing what we’re investing for,” she shared. Whether it’s retirement, a year of globetrotting or some extra cash post-graduation, your end goals play a big part in determining how you should go about your investing.

Use time wisely
As the old saying goes, the best time to plant a tree was twenty years ago, but the second-best time is today. As it turns out, investing is not much different—at least according to Canavan. “History has showed us that investors with well-diversified portfolios, who stay the course amid short-term market fluctuations, have eventually been rewarded by the long-term upward course of the markets,”* she said, “It’s about finding what the right amount to invest is for you, and choosing a regular contribution that best serves your time horizon.”

Diversify your portfolio
“No asset class or strategy always works,” said Canavan. One of the smartest ways you can build a portfolio that is resistant to market volatility is by investing in different sectors or countries—as well as different types of investments such as equities and bonds. Diversifying the investments in your portfolio sets your finances up for resilience as the market fluctuates.

Remain disciplined
Members learned tips on how to commit to the investing goals they’ve set, and how to better understand the common market trends that often scare investors into selling. Selling in response to a market decline often results in needlessly locking in losses on investments that may stand a good chance of recovering. Not to mention that missing even a few days in the market at the wrong time can have a long-term effect on your portfolio. Canavan provided the example of an investor who missed the ten best performing days in the Canadian stock market over ten years ending on December 31, 2021. That investor’s returns were cut by more than half.* “Down days are inevitable,” said Canavan, “but staying invested for the good days has rewarded investors time and time again.”

Build systems for success
It’s important to build systems that sustain these habits in order to create clarity, help maximize outcomes and keep yourself on track. Setting small goals and opening the right investment accounts are some examples Canavan shared on how to get started. Another tip: “set up different accounts for different goals,” says Canavan. “Having different accounts, each of which serve a very distinct goal, helps keep that material element aligned with how you’re investing.” A mix of novice and long-time investors made up the event’s guest list, each of which walked away with something new to bring to their financial journey.

Before members helped themselves to a discounted shopping session in-store, they participated in an open Q&A— where questions from choosing the right digital investing platform to cryptocurrency were addressed.

Scroll down for a closer look at what went down, and visit RBC InvestEase to start investing today.

RBC InvestEase Inc. is a restricted portfolio manager providing access to model portfolios consisting of RBC iShares ETFs. Each model portfolio holds up to 100% of RBC iShares ETFs. RBC iShares ETFs are comprised of RBC ETFs managed by RBC Global Asset Management Inc. (RBC GAM) and iShares ETFs managed by BlackRock Canada Limited (BlackRock Canada). RBC GAM and BlackRock Canada entered into a strategic alliance to bring together their respective ETF products under the RBC iShares brand, and to offer a unified distribution support and service model for RBC iShares ETFs.

Other products and services may be offered by one or more separate corporate entities that are affiliated to RBC InvestEase Inc., including without limitation: Royal Bank of Canada, RBC Direct Investing Inc., RBC Dominion Securities Inc., RBC Global Asset Management Inc., Royal Trust Corporation of Canada and The Royal Trust Company. RBC InvestEase Inc. is a wholly-owned subsidiary of Royal Bank of Canada and uses the business name RBC InvestEase.

The services provided by RBC InvestEase are only available in Canada.

* www.rbcgam.com/documents/en/advisor-support/staying-the-course.pdf