Investing for beginners

Whether you’re new to investing or already have a plan in place, you can rely on us for trusted advice on building your financial future. Together, you can work with a Financial Advisor and play active role in developing the best investment plan possible.

With our Future Success Planning tool, you can begin the first phase of the planning process from the comfort of home. Our tool allows you to enter preliminary financial and investment information, select your investment goals, identify your investment style and build a profile that you and your Financial Advisor can use as a foundation. Ask your Financial Advisor for a Future Success Planning tool invitation to get started.

Once we understand your situation and goals, we’ll recommend the right products and solutions. We can also explore ways to maximize your wealth accumulation and tax savings to ensure a steady stream of retirement income.

What’s your investment style?

Finding your personal investment style begins with understanding your risk tolerance. The basic investment principle of risk and return is: higher risk brings higher returns, and lower risks brings lower returns. The “risk” with any investment is losing money.

What factors determine your risk tolerance?

Age, income, experience and personality are a few of the most common attributes that factor into risk tolerance. Younger people tend to gravitate toward riskier investments while older demographics typically pick safer investments. First-time investors and people with moderate finances tend to be more conservative than those with greater disposable income. And, some people are just risk takers in life and some aren't.

What do I invest in first?

Establish a set of goals before investing to determine which plan is right for you. If your goal is to purchase your first house, you could use funds from a Registered Retirement Savings Plan (RRSP) for a down payment using the Home Buyers Plan. However, if you have the money saved in a Tax-Free Savings Account (TFSA) it may make more sense to use that money as a down payment instead of borrowing from your RRSP. By investing in a TFSA, you won’t benefit from the RRSP tax deduction on your contributions, but withdrawals are tax free. You can also choose to re-deposit the money on your own schedule, without any further tax implications.

Whatever your decision, try to invest at least $50 a month in an RRSP so you’re saving something toward your retirement. Compound interest turns that $50 into a lot more money by the time you retire, especially if you start when you’re in your twenties or early thirties. Contributions to an RRSP can also be used to reduce the tax you pay.

After you have a child, consider starting a Registered Education Savings Plan (RESP) for them. There are government programs that match a percentage of the funds you invest in an RESP, so take advantage of this as early as you can.

How does diversification help manage risk?

Choosing a variety of investment options is always a good plan. Successful investors often have a mix of high- and low-risk assets. A typical investor may have their RRSPs locked in segregated funds to keep their retirement savings secure, but also trade online stocks for more short-term gains.

Segregated Funds

Depending on the registered plan you’re investing in, a segregated fund will guarantee most or all of your initial investment. That means your funds are insulated against a hard market crash. If you’re just starting out and don't have a lot of money to invest, this is a great choice for a secure and growth-oriented investment.

It’s important to protect what you work so hard to earn. Your Financial Advisor will help every step of the way. They’ll tailor a solution specific to your insurance needs and financial goals.