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What the Finance: WTF is Investing All About
On this week's episode of WTFinance Shamiale sits down with team member Tiffany Daw to get to the bottom of what investing is all about.
By ATB Financial 27 November 2025 3 min read
Welcome to Week 4 of WTFinance! This November, we've been dedicated to Financial Literacy Month by following the financial learning journey of our social media coordinator, Shamiale. Today's topic: What is investing and how exactly do we get started? Tiffany Daw helps to answer this question.
Terms to know
Ready to dive into investing? Here are some key terms you'll encounter along the way! Let's break them down!
Stocks, equities, and shares
These terms are often used interchangeably and represent ownership in a company through investment.
Guaranteed Investment Certificates (GICs)
A GIC is a product sold by retail banks. It guarantees the return of your principal and a fixed interest rate in your bank account.
High-Interest Savings Account (HISA)
While not strictly an investment, a HISA is an excellent way to keep your money safe and liquid while still earning a small return.
Compound interest
Compound interest can be either the best or worst thing for your finances. If you have credit card debt and don't pay it off monthly, you pay an annualized rate (e.g., 20%). The interest is added back, and you then pay 20% on the new, higher balance (interest on interest).
However, when investing, you earn money on your earnings year over year, accelerating your returns.
Diversification
Diversification is the practice of investing in a variety of different things—countries, sectors, companies, and risk levels (high vs. low). This strategy ensures you don't have "all your eggs in one basket" and can help manage overall risk.
Investments that are not on the Stock Market
If you're considering investments beyond the stock market, Tiffany offers some wisdom for exploring off-market options.
Is property the right investment for me?
Property is generally considered a good, long-term investment.
Gold
Gold is an asset that has always been relevant and is currently popular again. It can be a good investment if it suits your personal portfolio, but it is recommended to discuss this with an expert.
Crypto
Cryptocurrency can seem intimidating due to its volatility. Since it is a long-term play, be prepared for a rollercoaster ride—which some people find enjoyable.
Alternative investments (material purchases)
Whether material purchases—like a designer bag, antique car, or artwork—can be an investment depends on their valuation and whether they will hold or increase their value. For example, some luxury brands like Chanel have historically increased in value by about 10% per year. These pieces can be amazing investments, but they typically require existing wealth to acquire and can be more difficult to liquidate than traditional assets.
Getting started
Getting started can be overwhelming but here is some advice on those first steps.
Investing alone vs. with an advisor
Investing with a financial advisor can potentially yield an annual return of 3% or higher, and they help you avoid mistakes. However, there is a place for self-directed investing if you enjoy learning about investing or want to "have a little fun."
When to start and how much to invest
Start now. Experts suggest investing anywhere from 10% to 30% of your paycheque. Ultimately, you should invest what you can afford by paying yourself first.
Investment options for different financial goals
The longer your time horizon, the more risk you can typically afford to take on, depending on your personal tolerance. For short-term goals (under 2 years), a HISA or GIC is a good option since you want to avoid market volatility.
Avoid keeping savings in a chequing account
You should never keep your savings in a chequing account. Your money needs to work for you, making a savings account a much better option to earn a little.
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