Get Informed

Before you Invest

Stocks, bonds, mutual funds or real estate? There are a lot of ways you can invest your money. Each has its own pros and cons, and it's important to know what the differences are in order to choose an investment that's right for you.

Before you invest, it's important to assess how an investment fits within your financial goals and risk tolerance. High returns always come with high risks, and there's no such thing as a high return, risk-free investment. If you want higher returns, you need to be prepared to accept the risks that come with them.

A registered financial adviser can help you assess your financial needs, goals and tax situation. An adviser can also assist you with building your portfolio and recommend investments to help you meet your goals.

Know who you are

Everyone has a different idea of what money means to them. It might be personal freedom or a sense of security, or the ability to afford the things they want in life. Whatever it is, it's important to remember that no one cares more about your money than you. No matter who's handling your investments, only you will know if you are truly comfortable with the investment choices. It's up to you to stay on top of your investments and make sure they keep working for you.

Know your goals

Once you know your personal money values, take a look at the bigger picture. How do you see yourself down the road?

Using the S.M.A.R.T. formula, you can set financial goals that are:

  • Specific
  • Measurable
  • Attainable
  • Realistic and with a defined
  • Timeline

Set and review a budget regularly (every 6 to 12 months) to help stay on track toward your goals.

Know your risk tolerance

Every investment has some amount of risk. Knowing your ability to take on risk is crucial to understanding what types of investments will work for you. Your tolerance for risk may depend on:

  • if you would rather keep your money safe or seek higher growth
  • when you need your money
  • how you react to the ups and downs of the markets
  • if you have any debts
  • if you have other sources of income to fall back on