Questions to answer before investing in anything ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ July 3, 2026 INVESTOR INSIGHTS View Online INVESTOR INSIGHTS Before you invest, ask yourself these questions As an investor, you are constantly faced with opportunities to grow your money. Some of them will be good, some will be bad, and some will sound so good that a part of you will know they must be bad. How do you know which is which? Start by asking yourself these seven questions. What is the underlying asset? Are you investing in a stock, a bond, real estate, a fund, crypto, a private island? When you earn money, is it through interest, dividends, rent, pure price appreciation, or something else? Before you hand over a single dollar, you need to be able to explain how the underlying asset you’re investing in generates money for you. What are the risks? Investing is always a tradeoff between risk and return. Even in so-called “risk-free” assets, you’re still parting with your money now — and taking the risk that a better investment comes along later. With any asset, you need to understand what factors could drive the price down, including risks that might be specific to that industry. And of course, make sure you know what the worst-case scenario is. Think through your maximum potential loss and the probability of it actually happening. If that makes you tear up, it might be best to move on. What are the fees? Management expense ratios, trading commissions, performance bonuses, taxes — they’re all hidden costs that eat into your returns. Make sure you understand not only what it costs to own the investment you’re considering, but also what it costs to sell it. How liquid is it? An illiquid investment is not a bad investment, but it does increase your risk. If something comes up and you need to sell quickly, a lack of buyers can really depress your price. And in extreme cases, like if the asset has a covenant requiring you to hold it to maturity, you may not even have the option to sell. Canadian real estate is a classic example of limited liquidity: it’s performed very well for decades with seemingly little risk, but at times a seller trying to offload their property might need to wait months (or add a serious discount) to close a sale. What are the historical returns? You’ve heard us say this a lot, but that’s only because it’s true: past performance doesn’t equal future results. But that doesn’t mean past performance is irrelevant. An established track record of at least ten years should give you some confidence in a new investment. If it hasn’t done well or if performance has been erratic that’s not a death knell, but it sure is a warning bell. How does it fit in your portfolio? If this new investment tends to respond differently to economic and market forces than your existing investments, you also get the benefit of added diversification. Not a requirement, but a definite plus. Who are you buying the asset from? If it’s not a licensed securities dealer like Wealthsimple or another platform you recognize and trust, do a quick search of the Canadian Securities Administrators registry. If the seller isn’t listed there, you’re better off walking away. The upshot No matter what investment you’re considering, remember: the best investors aren’t the ones who find the newest or most exciting opportunities. They’re the ones who avoid making the most costly mistakes. So it pays to approach investing with skepticism. Wealthsimple portfolios are built on this principle. Instead of focusing on “the next big thing,” we construct all of our portfolios around the idea that long-term, diversified investing is one of the most reliable paths to building wealth. Not because it’s exciting, but because it works. As always, if you have any questions or ideas, don’t hesitate to reach out. All the best, Steve Katuska Senior Director, Investment Research Don't neglect your estate Building generational wealth takes thoughtful estate planning. Learn how by watching our latest webinar for high-net-worth households. View the recording Did you like this newsletter? Your feedback (even if it's just to complain) helps us get better. If you're feeling chatty, after you rate us below you'll get the opportunity to share more detailed feedback — including topics you wish we'd cover. Yes No Wealthsimple, 80 Spadina Ave Suite 400 Toronto, ON, M5V 2J4 Refer a Friend Privacy Policy Unsubscribe Replies to this email address are not monitored. Have questions? Contact us. All information and commentary provided is for illustration purposes only and is not investment advice or recommendations. All investments involve risk. To get more info on our products, investment decisions, fee schedules, user testimonials, promos & more visit wsim.co/disclaimers Indicated performance data are historical for the period indicated. Rates of return do not take into account any fees or tax payable. Past performance may not be repeated. Managed accounts are offered by Wealthsimple Inc., a registered portfolio manager in each province and territory of Canada. © 2026 Wealthsimple Technologies Inc.