These daily financial tips are designed to be short ideas covering different aspects of family and business finances. They are short pieces intended to provide information to enable individuals, families and businesses to make informed financial decisions. Not all tips will apply to every situation, but over the course of a year, most financial topics will be covered. Check in regularly and share with friends and associates.
Where should I invest my money? How should I invest my money? January and February are months of heightened awareness regarding investing as annual investment statements and year end tax reporting slips are mailed out. There is considerable advertising in all media – newspapers, magazines, TV, Social Media regarding different investment options and choices, many extolling recent rates of returns. It can be overwhelming and daunting. Some of the rates of return being promoted will appear very appealing.
Before making contributions to your TFSA or RRSP accounts or changes to your existing investments, it is important to put your investments into the context of your individual family, lifestyle and professional priorities. Everyone’s situation is different. Investing based on promotional material you have seen extolling recent rates of return may not be most appropriate for your individual situation and can have long term negative effects.
Before investing, it is important to consider various factors, including: What are your short term and long term goals? What are you investing for? How much volatility, fluctuation in the rates of return can you stomach? What is the best investment portfolio mix appropriate for your situation and are the weightings being maintained? What is the nature of the underlying investments that you are purchasing and are they appropriate for your situation? Making spontaneous and ill researched investments can have long term consequences. If uncertain or don’t have time to fully investigate, then perhaps consider placing your current investment in a cash or cash equivalent holding until you have time to seek appropriate advice or explore. If you do this, ensure you to follow up to switch your cash holdings into the most appropriate investment in due course.
Besides considering your own goals and objectives before investing, once you’ve decided on the most appropriate investment mix, there are other factors to consider, such as the investment style of the portfolio or investment manager. Ie are they growth or value oriented managers? Are they active or passive investment managers? Etc. Always review your investment and financial statements to ensure your existing holdings are performing as you expect.
It is generally best to consult with an investment advisor or Financial Planner to explore options best suited for your situation. Studies indicate investors who utilize an investment advisor tend to accumulate 25% or more in holdings over their lifetime. Investment advisors/financial planners maintain various educational standards, focus on emerging investment trends and are not emotionally invested in the process so can be objective and professional when making decisions. There are thousand of mutual fund choices, covering hundreds of investment options, don’t let the myriad of options create confusion in your decision process. You work hard for your money, taking time to make appropriate decisions will enhance your long term financial position.
If you aren’t sure what you are seeing on your investment statements, or you are having sleepless nights regarding your financial situation or investment statements, then consult with an advisor to make the necessary changes to avoid sleepless nights. Sleepless nights are generally an indication something is not right with your financial situation. The sooner you begin to take action, the better the long term results.
Share these ideas with friends and family and come back to check out daily financial tips and ideas. If there are subjects you wish covered or questions, please email me and I’ll include them in future posts.

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