I’m just starting out. What’s important to me right now is establishing credit, starting a savings plan, building my career and securing my financial future.

You’ve heard it before and it’s an important message: pay yourself first! Whether you’re saving for the short-term or investing for the long-term, it’s a good idea to get into the habit of putting aside 5-10% of your gross monthly income. This will give you a disciplined approach to investing and allow you to take advantage of strategies like dollar cost averaging. It also gives your money time to compound and grow.

If you are new to investing, start by contributing to your Registered Retirement Savings Plan (RRSP). RRSPs are an excellent choice because your investments grow tax-free over time, while they’re in your RRSP. You can hold a number of different types of investments in your RRSP. Since you’re young, you may want to consider Segregated Funds which offer all the growth potential of mutual funds and more.

If you owe money, consider how you might eliminate or lessen your debt load. As a general rule of thumb, your debt load should be less than 40% of your gross monthly income. If you use credit cards, pay the balance off monthly or, better yet, use them only for emergencies.

Think about insurance. Buying insurance when you’re young lets you take advantage of lower premiums, since most insurance products are priced so that premiums are lower when you’re young. Even if you don’t have dependants, insurance can protect you against the financial impact of a critical illness,

Have a plan and write it down. This way you can revisit your goals regularly and stay focused. An independent advisor can help you map out a financial plan that works for you.

Start Early
RRSPs
Segregated Funds
Life Insurance
Critical Illness
Have a Financial Plan
Why Use an Independent Advisor?