[Ep. 176] How to Build Wealth by Investing in ETFs with Som Seif

CoPowerThis episode of the Mo’ Money Podcast is supported by CoPower. Want to invest in fixed income, help the environment, and earn 4-5% returns? You can do it all by buying CoPower Green Bonds. Learn more at CoPower.me.

Som Seif - Purpose InvestmentsI hope you’re ready to get your investing knowledge on, because for this episode I’m joined by the king of ETFs Som Seif! To give you some background on Som in case you’re unfamiliar with his importance in the investing world, he is currently the founder and CEO of Purpose Investments Inc., which he formed after he sold his first company Claymore Investments to Blackrock Inc. in March 2012. You may be familiar with Blackrock as they offer a number of great ETFs you’re probably already invested in, and the same goes for Som’s new company Purpose Investments.

Now, Som started his Claymore Investments in 2005 because although he had been an investment banker with RBC Capital Markets since 1999, he wanted to be able to really help individual investors by making low-cost ETFs more accessible. And he continues to do so with his new company Purpose Investments, and shares more helpful tips to investors of all ages in this episode.

How Much You Should Invest

If you’re just starting out, meaning you’ve recently finished school and are working full-time, Som suggests investing 15-20% of your net income. You’re at such a great stage in life where your cost of living is low (even if your salary is too), but the money you invest this early in life will have a huge, positive impact on your future. If you wait to invest later in life, then make sure to boost that percentage to hit your target end goal.

How to Invest

It’s great knowing how much to invest, but a better question is how to invest? Luckily there are some great options now with all the robo-advisors out there, which is one way Som suggests can be a great way to invest your money. He really does believe in robo-advisors since he was one of the founders of Wealthsimple, and believes in making investing in low-cost ETFs simple for every type of investor.

Or, if you’d rather work with an investment advisor, you may need to have a greater some of money to do so, but it may be what you’re looking for in terms of getting specific guidance and management.

Then again, you may want to be fully in control, which means you’ll want to go the self-directed route and pick your own portfolio and manage it using a discount brokerage.

Don’t Be Scared off by Investing

We dive into some deep subjects like crypto, blockchain and the future of investing, and honestly it was even intimidating to talk about with Som myself, but that’s something that Som wants to make sure doesn’t happen. Investing isn’t hard and you shouldn’t be scared off by new technologies and new strategies emerging.

You need to arm yourself with information, because as you and I both know, the best way to rid yourself of fear and worry is to educate yourself. One way to do that is to follow his suggestion by reading books by Benjamin Graham to have a better foundational understanding of investing.

3 Key Things You Need to Do to Be a Smart Investor

As Som mentioned, investing isn’t hard. Here are the 3 key things he suggests for any investor’s success:

  1. Build a portfolio of strong assets that perform well
  2. Keep costs low
  3. Stay diversified

Start Investing Now

The biggest take-away from this episode is that investing is incredibly important to take part in. It shouldn’t be something you delay until your 30s or 40s. The sooner you start investing in life, the better off you’ll be in the future. Moreover, you’ll also become more confident and feel more secure with your finances my having a solid plan for retirement and your other financial goals.

So if you just got your first job out of school, make sure to invest some of that first paycheque. If you’re further along than that in your career, there’s no better time to start than today!


Watch My Side Hustle Online Training

I’ve been doing a number of workshops on how to become a side hustler, so I thought it was about time to do a webinar so you can attend no matter where you live.

Watch the “How to Become a Side Hustler” online training

What's one easy way to build wealth? How about investing in low-cost diversified index-based ETFs? That may sound like a bunch of jargon to you, so listen to my podcast episode with Som Seif to understand what I'm talking about.

You May Also Like...

Want to learn how to build wealth? Invest in low-cost ETFs! Investing in ETFs in Canada is one of the best ways to do passive investing & reach your financial goals. #investing #ETFs #indexinvesting #indexing #passiveinvesting #wealth #personalfinance
This content is provided for information only and is not advice. I make no representations or warranties regarding the accuracy or completeness of the information and will not be responsible for any loss arising out of reliance on the information. To learn more, read my Privacy Policy and Disclaimer.
Showing 2 comments
  • Vanessa
    Reply

    This was a great episode, Jessica! I can’t remember if it was you or Som who mentioned the names of some investment books worth reading. Do you remember the authors or titles?

    • Jessica Moorhouse
      Reply

      Som definitely mentioned Benjamin Graham, so probably he meant his famed book The Intelligent Investor. For my, my go tos are The Value of Simple by John Robertson (for Canadians), Millionaire Teacher by Andrew Hallam and The Little Book of Common Sense Investing by John C. Bogle.

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Start typing and press Enter to search

69 Shares
Pin42
Share23
Share4
Tweet
Email