Investing is a smart option once you have your debt, budget and savings in check. If you are just beginning to invest your money, it may seem confusing, and there are many options to consider. You want to invest your money in a smart way, and this is often times made easier with speaking to a knowledgeable financial advisor. Whatever method you choose for investing your money, the goal is always to put your money to work so it earns you profit. When deciding to invest, consider these investment tips to make the most of your money.
1. Start investing now.
Don’t wait to invest, even if it’s just a small amount of money at first. You’re never too young to start saving a small amount each month. The longer you invest, the more money you’re going to make in the long run. Individuals who start saving at a younger age will make more money because of compounding rates of return.
2. Speak to someone who is Financially Knowledgeable.
Talk to an investment advisor at your bank to learn about different account options- there are tax-free savings accounts (TFSA) which may work well for you. TFSA’s provide a lucrative opportunity for individuals with left-over income to invest in a savings vehicle. A financial planner is a great person to speak to and ask more about what they can do for you. Once you educate yourself on all the different options and what works best for you, it will be easier to make smart decisions.
3. Diversify Your Investments.
A mutual fund provides investors access to a diversified portfolio of investments. Your money is pooled with other like-minded investors, and is invested on your behalf by qualified investment professionals. A mutual fund account can be opened, through your Financial Advisor, with a relatively small amount of money. A segregated fund is an investment fund that combines the growth potential of a mutual fund with the security of a life insurance policy. Investing means putting your money to work for you and is just a different way to think about how to make money. By making your money work for you, it maximizes your earning potential. Educate yourself and decide which option works best for you, or if the task seems too daunting, simply speak to a financial advisor to assist with the investing process. Remember- once you start saving, you need to commit to this regularly.