CIBC offers 'six investment tips' to help investors get started today
"For those who are just starting to think about investing their money, an important first step is to consult a professional," said
With professional guidance and by understanding a few simple investment principles, investors can begin to build a foundation for long-term growth, moving closer towards achieving their goals with each contribution.
CIBC offers these six fundamental concepts to help demystify investing.
1) Have a plan. One of the most important tips by far: if you don't have a plan, how do you know where you are going, and how will you know when you arrive? Your plan will help you set realistic goals, order your long-term priorities and show you what you need to do. Review your plan with your advisor, at least annually, to ensure you have the right solutions in place and to help you maintain perspective and stay on track towards your goals. 2) Get started today. Don't procrastinate - after you make your plan, do something with it. The most significant market happenings are often swift and unpredictable so waiting for the perfect market conditions to arise before you invest could hinder your long-term financial goals. For younger investors, time is one of their biggest advantages. 3) Always take taxes into account. Always consider the effects of taxes on your returns. Some investments are more advantageous than others as taxes and inflation can diminish returns. Investors also need to be aware of the relative tax implications of different investment vehicles, such as the advantages of investing in a Tax Free Savings Account (TFSA) versus a Registered Retirement Savings Plan (RRSP) which can vary depending on the individual and their goals. 4) Contribute regularly. It's considerably easier to come up with smaller investment amounts on a regular basis than it is to make large, lump-sum contributions. A regular investment plan allows you to choose how often and how much you want to contribute, ensuring investing remains a priority all year long. This is the most painless way to get started and you will be pleasantly surprised with the results. 5) Understand risk and diversify. Always consider the long-term return potential, level of risk and suitability of any investment before adding it to your portfolio. The key is to build a balanced, well-diversified plan adjusted to meet your own level of risk tolerance that can both help protect and grow your capital over time. 6) Give your investments a chance to grow. Be patient and let time do its work. Remember, your plan is a long-term one and the more time your investments have to grow, the greater your total returns will be. Avoid withdrawing funds from your investments to pay down short-term debts. For short-term funding needs, consider your other available sources like non-registered investments or a Tax-Free Savings Account.
"Remember that your investment advisor is your greatest resource and ally as you look to grow your assets and achieve your financial goals," adds Geist. "Having a dedicated professional watching out for your best interests can help take some of the mystery and pressure out of investing."
For more information, contact your local CIBC branch or visit www.cibc.com.
CIBC is a leading North American financial institution with nearly 11 million personal banking and business clients. CIBC offers a full range of products and services through its comprehensive electronic banking network, branches and offices across