Your Investment Plan
Investing is making your money work for you without taking any more risks than is necessary for your comfort. However, knowing how much to invest and where to put your money is something that should be planned. Unlike saving your money, which is a passive activity (for your money), investing is focused on producing a return and can be done conservatively or agressively, depending on your goals and personal risk tolerance.
A good place to start is determining which issues you should focus on.
The Financial Planning Pyramid
The Financial Planning Pyramid (pictured below) illustrates how developing a financial plan proceeds as long as it is built on a sound foundation.
You should start by addressing the basics: Life Insurance, a will, debt elimination and an emergency fund (allowing for six months expenses). As you move up the pyramid your focus changes from protection to wealth accumulation. Each level of the pyramid introduces more risk but also a potentially higher return.
Determine What Kind of Investor You Are
Second, you should determine what kind of investor you are. This can range from Conservative (your investment horizon is short or you may prefer to take less risk - security is your most important concern) up to Aggressive (your investment horizon is long enough to benefit from an aggressive orientation. Your main concern is growth of money over a long period. You are comfortable with market fluctuations). Click here to download a Risk Assessment Questionnaire that will help you understand what Kind Of Investor You Are.
Now What?
The preceeding steps are very important in beginning your financial plan and your journey into investing. A Financial Planner can help you continue on your journey and advise you, based on your Risk Assessment, to determine the best products to help grow your money. Contact us to set up a confidential appointment with a financial advisor.
Common investment options are GICs, Mutual Funds, and Segregated Funds. The following table illustrates some important differences between these three options, that your financial advisor can explain further.
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GICs |
Mutual Funds |
Segregated Funds |
| Will my investment have unlimited growth potential? |
No |
Yes |
Yes |
| Will my investment provide stable, predictable retirement income? |
Sometimes (with laddered GIC) |
No |
Sometimes |
| Can I invest in industry-leading funds? |
No |
Yes |
Sometimes |
| Can I diversify my investments? |
No |
Yes |
Yes |
| Can I switch between funds from different fund companies without incurring fees? |
No |
No |
Sometimes |
| Is creditor protection available? |
Bank & trust, sometimes; insurance, yes |
Sometimes |
Yes, in certain circumstances |
| Is there a 100% death benefit guarantee? |
No |
No |
Sometimes |
| Can I avoid probate fees on my non-registered investment? |
Bank & trust, No; insurance, yes |
No |
If a beneficiary is named |
| Is my deposit protected if the market drops? |
Yes |
No |
Yes |
| Can I lock in my investment gains? |
Yes |
No |
Sometimes |
| Can I invest in asset allocation funds? |
No |
Often |
Often |
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Tax Free Savings Account
More about Investments
Contact us at 905-427-2846 or click here to book an appointment with an Advisor.
Please browse our downloads page for informative brochures you can read at your leisure.
If you see a term anywhere on our site that you do not understand, please visit our glossary, the term may be defined there.
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