Randolph Williams banks on-line, so taking care of his RRSP investments on the Internet seemed a logical next step.
"I do on-line banking, so all of my accounts, transfers and payments are there," he says. "That's my central access point and from there I can access my mutual funds."
Canada's big banks offer customers the ability to invest in mutual funds on-line in a simple process that is integrated with on-line banking.
"It's extremely easy," says Mr. Williams, an IBM business consultant based in Toronto, who invests through Bank of Montreal. "They walk you through the process."
In addition to buying a bank's mutual funds, it is also possible to invest in stocks, bonds or income trusts through a bank's self-directed, on-line investing service.
One of the main advantages to doing this through your bank is that you can see all your accounts in one place -- your banking, borrowing and investing -- and you can move money between accounts in real time.
"You can go on-line, see it in real time, know where you stand," says Steve Hamel, vice-president of client service strategy for TD Waterhouse Discount Brokerage.
In fact, many peoples' first foray into on-line investing is the RRSP, says Doug Coulter, president and chief executive officer of RBC Action Direct, Royal Bank of Canada's on-line broker. And users benefit by having their investment service tied to their bank account.
"That's a focal point for getting people started," he says.
With that in mind, each bank offers an introductory tour on its website, and the tours are as widely disparate in look and feel as the banks' logos. They range from an easy-to-follow yet information-packed presentation from WebBroker, a service of Toronto-Dominion Bank, to a seminar-like tour with audio from InvestorLine, a service of BMO. Some, like the demo from CIBC's Investor's Edge, encourage users to skip to sections they are interested in. For others you'll need more time and patience.
Investors will find plenty of research material and tools on-line, but they will also need a basic desire to control their own RRSP and acquire the knowledge needed to do so, says Paul Davidson, marketing director for ScotiaMcLeod Direct Investing and Scotia Securities Inc.
A recent poll from RBC Financial Group/Ipsos-Reid found that making an RRSP contribution is less stressful than going to the dentist, but choosing the right investments for an RRSP is more so.
Ed Dupuis, who lives in Toronto and invests with TD Waterhouse, insists anybody is capable of investing on-line.
"If you can read, you can do it," says Mr. Dupuis, a senior field applications engineer for Gennum Corp., a Canadian producer of silicon integrated circuits.
Well versed investors who are familiar with fundamental investment and trade execution concepts used by their brokers will know how to use the charts and data to guide actual trading.
First-time investors who need more explanation will find plenty of support, including on-line glossaries, asset-allocation and risk-assessment tools, plus phone assistance.
WebBroker provides a downloadable guide for beginners, and InvestorLine offers sample portfolios that clients can adapt to their own needs.
Asset-allocation tools are particularly important for beginners, says Marybeth Jordan, executive director of product for CIBC Wood Gundy and CIBC Investors Edge. Simple questions within the asset-allocation section of the site help users determine where they fall in the risk continuum, which then allows them to move on to the investing tools.
"What is your time horizon, what are your needs for the money, what do you expect as a decent return? You can put all that in and it will give you a suggested asset allocation," Ms. Jordan says.
Self-directed investor Mr. Dupuis figures that by investing a bit of time, he can easily make 20 per cent more than those who choose mutual funds. He says it's mostly fear that keeps people from going further.
There is also a lack of information about how to get started, he says. He points out that it's not in the best interest of most fund companies to make it widely known how it all works.
"People would be better off making their own decisions" on where their money is invested, Mr. Dupuis says. "It saves them money and mutual fund fees. It just takes a little bit of work."
Potential investors should read business papers and do research into a couple of areas they want to focus on. "You can't be an expert in everything," he says. "Gas sector, high tech, minerals and gold -- pick an area and become an expert."
About 75 per cent of InvestorLine users have specific financial goals, such as retirement or their children's education funds, says Connie Stefankiayicz, president and CEO of the service.
The site has tools, information and resources to help clients understand what they need to do, she says.
That said, what if you're Web-savvy, you bank on-line and you invest your RRSPs in mutual funds but you're still afraid you'll mess up?
"We can all make mistakes with help or on our own," Ms. Stefankiayicz says. "Clients need to clearly understand what they are trying to do and understand their risk tolerance.
"With that information in mind and using the tools and resources, and being proactive, they can in fact be very successful," Ms. Stefankiayicz says.
Not to mention that there are three stages to putting in a trade, and hundreds of investment representatives waiting by the phones. Not with investment advice -- that's not allowed -- but they can hold your hand as you go through the process.
If it still seems daunting, consider bank offerings that include more personalized services and professional advisers.
On-line trading services
Many peoples' first foray into on-line investing is via their RRSP. Here's a look at the trading sites affiliated with Canada's major banks.
Bank of Montreal
http://www.bmoinvestorline.com
Investing service: InvestorLine
Site features: On-line tour with audio; sample portfolios; by mid-summer it will be possible to open an account instantly as opposed to the current 24-hour wait.
Royal Bank of Canada
Investing service: Action Direct Site features: Access to more than 2,500 mutual funds through 100 fund companies; investment representatives available via telephone.
Toronto-Dominion Bank
Investing service: WebBroker
Site features: Downloadable booklet aimed at helping beginners get started; the call centre is open 24 hours, seven days a week.
Canadian Imperial Bank of Commerce
http://www.investorsedge.cibc.com
Investing service: Investor's Edge Site features: Call centres are open during regular business hours and some hours on the weekend; offers case studies that help users achieve objectives by looking at situations similar to their own.
Bank of Nova Scotia
http://www.scotiaonline.scotiabank.com
Investing service: ScotiaMcLeod Direct Investing Site features: Customizable web pages in which you can move windows around; news stories and research reports available in Chinese.
SOURCE: MARA GULLENS