1. Buy investment products based on your needs, not past returns
Past performances are not indicative of future returns. Your choice should be based on your investor profile and the investment solutions that suit you best.
2. Let the market do its job
Experts agree that it is almost impossible to predict market movements. Don’t expose yourself to the risks of market timing. It’s better to begin investing as soon as possible so that your investment has time to grow. It’s not when you get into the market, but how long you stay invested.
3. Diversify your portfolio
By maximizing your annual RRSP contributions, you reduce your taxable income and save thousands of dollars tax-free that you will enjoy at your retirement.
4. Stay cool, calm and collected in times of volatility
If you have a long-term investment horizon, for your retirement for instance, stay true to your investment strategy and bear in mind that market drops are often followed by upswings. Just be patient and you could end up recouping your losses with long-term gains.
5. Focus on the long-term potential of the market
Although it is true that equities are generally more volatile than bonds, they also offer a higher potential for long-term growth. Including equities in your portfolio in proportion to your risk tolerance is an effective long-term solution.
6. Contribute to your RRSP each year
By maximizing your annual RRSP contributions, you reduce your taxable income and save thousands of dollars tax-free that you will enjoy at your retirement.
7. Review your portfolio with your advisor once a year
Talk to your advisor at least once a year or whenever an important event occurs and impacts your needs (purchase of a home, birth of a child, inheritance, etc.).
A few useful resources
- Meet with an advisor who understands you at a National Bank branch
near you.
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