BEAT THE BANK TUTORIAL (5% of final grade)
There are 4 questions in this tutorial. Each is worth 1.25% of your final grade. The
project must be submitted to the appropriate Brightspace folder by the date listed
in the syllabus. Late submissions will not be accepted.
Researchers found that people are better with money after they have seen a picture of
their future selves. Begin this tutorial by downloading an aging app, upload a photo of
yourself, and age yourself into your 70s.
Larry Bates, former Global Head of Debt Capital Markets for RBC, has put together a
bunch of resources to guide your financial journey. To answer the questions below you
will need to go to [Link]
1) Define and provide 2 examples of each of the terms below. Don’t be afraid to
simply type in each of these terms into Google.
a) Online Discount Brokers
An online broker lets you buy and sell stocks, ETFS and mutual funds online
within your trading account.
Examples: Fidelity, TD Ameritrade
b) Robo-Advisors
An online application that provides automated financial guidance.
Examples: WealthSimple, Wealthfront
c) Fee-for-service advisor websites
A fee based advisor that collects a pre stated fee for their services.
Examples: Vave Financial, Kind Wealth
d) Index ETF provider websites
Considers the universe of assets including stocks, bonds etc. and creates a
basket of them with a unique ticker. Investors can buy a share of that basket.
Examples: Blackrock, Vanguard Canada
e) Websites focused on savings
Websites that helps you focus on your financial goal, saving in your budget and
find ways to cut spending.
1
Examples: MoneySense, Gailvasoxlade
f) Retirement planning calculators
To determine how and where you want to live when you retire and determining
how much money you need to live on for your life expectancy.
Examples: My Money Coach, Canada Esplanner
g) Budgeting tools
Tools that can help you save money and keep track of your expenses.
Examples: Mint, Canada Finance Tools, many banks also provide free online
budgeting tools.
2) Now, go to [Link]. You will see they have “Do it Yourself” (Self-
Directed Investing) options, and Pre-Built Portfolios (Questwealth). What’s the
difference?
Pre built portfolios are managed by portfolio managers and rebalance your investments
when market conditions change, whereas self directed investing is when you invest
yourself without any portfolio managers.
3) Being a smart investor, you are committed to investing $500 a month into your
RRSP and you are wondering whether or not use a wealth manager, or a discount
broker, or to invest yourself. This tutorial will help you make that decision.
a) Go back to to [Link] to compare a few scenarios.
b) Find this box.
c) Change the amount you invest to 500.
d) Change the Annual Return(%) to 5.
e) Change the Time (Years) to 35
By simply changing the amount in the Annual Fees (%) box (and hit UPDATE), tell me:
a) How much will your first $500 be worth (Total Value) if you retire in 35 years
and you manage it yourself (input 0%) ?
To manage it myself, it would be $2758
b) How much will your first $500 be worth (Total Value) if you retire in 35 years
and you let use a Robo-Advisor manage your investments (input 0.25%)?
It would be $2537
c) How much will your first $500 be worth (Total Value) if you retire in 35 years
and you hire a Professional Wealth Manager to manage your investments (input
2%)?
It would be $1407
d) Looking at the data, which approach do you think you’ll use to manage your
RRSPs? Why?
By looking at this data, I would probably go with Robo Advisors or manage my
investments myself than to hire a Professional Wealth Manager.
4) Go to [Link]
Tell me 5 tips you will start doing this year!
Tip I would start doing:
- Minimize my textbook expenses.
- Use the library
- Sell my textbooks when I am done
- Use a meal plan
- Use public transit
If you’re interested in learning more, read this: [Link]
investing/switching-from-mutual-funds-to-etfs/?
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