The arrival of summer is an opportunity for many to relax, soak up the sun and clear the air. Before you do all that, take stock of your investments to make sure they will continue to grow, even while you take a much-needed break:
Have a plan . Without going into too much detail, write a reasonable plan for your short and long term financial goals. It may simply be a matter of setting aside a certain amount of money for an emergency fund; but you can also go further and make a long-term plan for your retirement.
Save a little every month . We all know the golden rule of “paying yourself first” by putting money aside. With plenty of opportunities to spend, it’s easy to get tempted. Sign up for an automatic savings plan; once it’s established, you won’t think about it anymore.
Read your statements . This advice may seem basic to you, but people often don’t bother to read their account statements. Take the time to read your statements and ask your financial services representative questions if there are things you don’t understand.
Communicate . Be sure to keep your financial services representative informed of any changes – whether positive or negative – that could affect your financial situation. Just as important as adjusting your plan to deal with a job loss is figuring out how the extra income from a raise will be used.
Meet with your financial services representative on a regular basis . Plan an annual meeting even if no change has occurred in your life. Bring your statements to meetings with your advisor and ask questions.
Adopt the Five Habits of the Smart Investor
When it comes to managing our savings, many of us don’t have the investment knowledge and experience to be successful on our own. That’s why the majority of Canadians work with an investment representative to craft a plan and stay on track.
Here are five habits to adopt in order to be successful:
Have a plan. Without going into too much detail, write a reasonable plan for your short and long term financial goals. It could be just putting money aside for an emergency, or devising a more complex long-term plan for your retirement.
Save a little every month. We all know the golden rule of “paying yourself first” by putting money aside. With plenty of opportunities to spend, it’s easy to give in. Sign up for an automatic savings plan; once it’s established, you won’t think about it anymore.
Read your statements. Elementary, isn’t it? Yet, many people don’t bother looking at their investment statements. Take the time to read your statements and ask your investment representative questions if there are things you don’t understand.
Communicate. Make sure you keep them informed of any changes – whether positive or negative – that could affect your financial situation. Just as important as adjusting your plan to deal with a job loss is determining how the extra income from a pay rise will be used.
Meet with your investment representative on a regular basis. Do it, even if there are no changes.