Did you know that a household that has used an advisor’s services for more than 15 years generally has 173% more assets than a household that has not worked with an advisor1?
Having a strong financial plan can really pay off! The bottom line is that a predetermined strategy and sound advice are a winning recipe to help you achieve your goals, whatever they may be.
But how do you know whether to save or invest?
The importance of setting goals
First of all, take the time to ask yourself these questions:
- What do you want?
- What are your life goals?
- What are your dreams?
- And, of course, how much time do you have before you’ll need your money?
Your answers will help guide your choices.
For example, if you’ll need your money soon for goal in the short-term like buying a property, saving for a wedding or building an emergency fund, the tax-free savings account (TFSA) might be the best avenue, because you need a savings solution.
However, if your goals are more long-term, like saving for your children’s education or for retirement, investing and taking advantage of market growth might be the better strategy. In short, understanding your needs and expectations is the key to making the right decisions.
Where do you start?
A good way to start saving or investing for a financial goal, whether in the short or long term, is to put aside a percentage of your income and adjust this percentage over time. Each contribution you make to your investments or savings, even small ones, is important and will make an impact on your goals.
To learn more about how to create a well-thought-out plan that’s right for you, download our needs checklist to help you make your financial plan or let one of our financial security advisors help you.
The value of an advisor
Want to build a financial plan, but you’re hesitating because of an unstable financial situation because you’re just starting a career or because you think your budget is too tight? Financial security advisors are here to help you evaluate your situation and create realistic strategies to achieve your financial goals. They can also give you the best advice to help you make the right choices for investments, savings or insurance.
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Want more tips? Sign up for our iA Newsletter to get tips and tools to guide you towards the right choices and to help you reach your goals, based on your needs and your situation.1 Source: Investment Funds Institute of Canada