The Bank of Dad's Guide to Investing

Introduction

The Bank of Dad is a virtual bank that has existed in our house since the children were small. For years the only form of mortgage we carried on our house was a home equity line of credit that you can slop money in and out of at any time. Therefore, when the kids entrusted us with their savings, it had the net effect of reducing the balance we carried on our equity line. It seemed only fair to pay them interest at the rate we were paying on the mortgage. We tracked their balances in Quicken and their interest accrued monthly. So that's the Bank of Dad.

The Bank of Dad was asked for its opinions on investing. BoD has decided to try writing a beginner's guide to investing in the form of a series of short notes, each covering just one aspect of investing. They will be posted at irregular intervals on this site and will remain up until such time as they seem useless. If we learn of inaccuracies or lack of clarity, we're open to revising them.

Table of Contents

1. What is investing?
2. Three kinds of investments
   1. Cash type investments
   2. Income (bond) type investments
   3. Equity (stock) type investments
3. Should you invest?
4. What is diversification and why should you care?
5. What is asset allocation?
6. What is the difference between a mutual fund and an ETF?
7. International investing
8. RRSPs versus TFSAs
9. Index Funds
10. Costs
11. Three Simple Rules of Investing
12. Socially Responsible Investing
13. Stock Valuation Ratios
14. Growth and Value: How Important is Investment Style?
15. Investing for Dividends
16. Bank of Dad has Written a Piece of Software!