What to do instead: “As science is helping us live longer, outliving our savings has become more and more of a reality for some," Simeone says. But before I splurge on a speedboat ( #yolo), I'm sure cooler heads would suggest seeking investment-savvy ways to live in the moment. “One day you're going to be wanting the support of a bank to lend you money for something that's super important."Ĭonsidering the year(s) we've had, it's reasonable to want to treat ourselves. Try to keep track of your monthly expenses, along with your income, to get a better picture of how well you're managing your money.īirenbaum also points out that every effort should be made to improve your credit score, and that includes paying your credit card bills on time.
What to do instead: Heath encourages investors to make paying your bills a top priority and make investing secondary to that. Jason Heath, Managing Director of Objective Financial Partners, says he's “seen cases of people paying 18 per cent interest on their credit card," while they also have money invested in a Tax-Free Savings Account (TFSA) that could be better used to pay off that high-interest debt. When you're carrying expensive debt, it can be hard to get ahead – no matter what the returns on your investments might be. But does that mean you should ignore your pesky debt payments? Probably not. It's easy to dream of hitting it big in the stock market.
If you're not confident about picking your own stocks, selecting a mutual fund or ETF index fund is another way to diversify your holdings. The asset class that performs the best one year may not be the best performer in the following years." “In any case, it is always wise to invest in different asset classes (real estate, stocks, bonds, preferred shares, etc.), as they often behave differently over time.
What to do instead: While real estate is often seen as a stable investment, it is susceptible to rising interest rates, which leads to higher mortgage payments and can, in turn, slow down the growth in home prices, says Jonathan Simeone, Montreal-based investment advisor at Assante Capital Management. But that would make your investment income overly dependent on the fortunes of a single asset class. According to the Canadian Real Estate Association, as of November 2021, the national average home price was up 19.6% from the same time last year. It can be tempting to put all your eggs in a particularly hot investment basket, such as real estate, especially given how much it dominates the news cycle. I don't know anybody that's been successful in going in and out to avoid the downturns." “You can't benefit from the long-term growth of the market if you're not there at all times to participate in it. “The only way to capture what the market has to offer is to be there through the ups and downs," says Rona Birenbaum, Certified Financial Planner ® and founder of Caring for Clients. Setting up an automatic savings program, to contribute a set amount of money to your portfolio regularly, is one way to ensure you'll ride the highs while weathering the lows - by taking your emotions out of the equation. What to do instead: For investors, especially young investors, it's about time in the market, rather than timing the market. It's why Warren Buffet - the investing icon nicknamed the “Oracle of Omaha" - is credited with saying the stock market is “a device for transferring money from the impatient to the patient." The market is a lot less predictable than new investors may believe. Easy money! Unfortunately, it's just a little more complicated than that - and anxious investors watching the markets rise or fall may unintentionally buy high or sell low instead. It seems so simple: purchase shares of a stock at its lowest value and sell it at its highest. So our writers, Nicola Brown and Ethan Rotberg, describe a few of the most common areas where investors can sometimes run into trouble, along with key recommendations on what to do instead.Ĭonsider it a refresher course, as you tune out the noise, and tune into some reassuring words of financial wisdom. Don't lose sight of your financial goals, avoid making rash decisions, and stay the course.īut that can be easier said than done. When world events create short-term volatility in the markets, it's more important than ever to maintain a focus on your long-term investment plan and objectives.
0 kommentar(er)
