More people are concerned about their financial future than ever before. While living day-by-day on your salary or hourly pay can be difficult for some, there are various options available to help invest for your future, no matter your age. Investing earlier in life is always best, but it can be done at almost any age to ensure you have at least some form of nest egg available for retirement.
Start a Retirement Fund Early
Various retirement funds are available and the most popular is the RRSP through the government. RRSP contributions are recommended by pretty much all financial advisors as being the safest option for saving for your retirement, and the most stable option. The earlier you can start contributing to your RRSP yearly, the better. Even if you can’t hit the yearly cap, it’s still a great idea to put something in each year, because the more years your principal is building up interest, the better the results.
Purchasing a Home
While housing markets are very hot right now in Canada, and over the last few years, for those that can afford it purchasing a home is a great method of investment. Not only does a home most often retain its value, the current market situation sees prices rising steadily. Of course, housing markets can crash, but the other benefit of having your own home is the fact you will very likely pay less money for a mortgage than you would for rent, allowing you to use that difference for your RRSPs or other savings and investments.
Short-Term Savings and Investments
Short term saving and investments are something that can be done at any age, although some investments are going to be more stable than others. Playing the market can make you money quickly, or cause you to lose money just as fast. The better option for short-term investments are GICs, or Guaranteed Investment Certificates. These are federally insured loans to a bank or credit union. When you set-up a GIC, you can deposit money into it and it basically acts as a loan, but instead of paying interest, you are paid interest by the bank. They lock your money in, but the longer you hold the GIC, the larger your return. Withdrawing early results in penalties or forfeited interest.
Consulting a Financial Advisor
No matter what kind of investing you choose, having a clear financial plan is always the best way to manage your money and ensure your financial future. Consulting with a certified financial advisor will give you access to someone that is going to help you build up your wealth, and give you sound financial advice. Choosing the right financial advisor is important, and this Government of Canada website can help you make the right decision.