According to the latest RBC Direct Investing poll, 85% of online investors are using their online investing accounts for either long term goals or a combination of both long term and short term goals. This contradicts the popular perception that online investors are only looking for a quick financial gain; in fact only 9% of Canadian online investors are seeking short term profits through their online investing accounts. When investing, deciding on what to invest in can be difficult; some people prefer to go the online route, while others may want to seek a more physical investment. A great example is comparing ETF vs Homeownership; they are completely different investments, but each offer their own strong points.
What does this mean?
What this means is that online investors are not looking to make a quick dollar; rather they want to meet certain long term goals they have set for themselves.
Michael MacDonald, vice-president, Strategy, RBC Direct Investing explained that with what online investors are looking for, RBC has introduced a goal setting tool to help investors define both their long and short tem goals, and chart their progress towards achieving them.
As it stands, 73% of online investors have been investing for longer than 3 years, and of these, 92% are 36 years of age and older. The remaining 27% have been investing for 3 years or less, with 35% of them being 18-35 year olds.
With that said, online investors face challenges, as they are newer to the online investing world.
What are the key challenges faced?
The key challenges that have been identified by those who are newer to online investing include the following:
- Not confident investing on their own (44%)
- Little time to manage their investments (40%)
- Inadequate knowledge to manage their investments on their own (38%)
It comes at no surprise to me that 84% of those newer to online investing use their online brokerage to gain investment knowledge. Realistically, you should be using any tools are your disposal to give you an edge when investing. Regardless of who you are banking with, if you are investing online with them, you are guaranteed to find some sort of tools to help you as you make your way in the online investment world.