The Investment Factor You Can Control

You can’t control the direction of the markets or the return on your investments, but you have complete control over the amount you save and invest. And the amount you regularly invest may be the difference in meeting your financial objectives or not. Here’s a look at some life situations that typically call for investing more.

Stay on track

When investors with a lower risk tolerance have a conservative portfolio with lower potential returns, they must regularly contribute larger amounts compared to more aggressive investors with similar financial objectives and time horizons. Also, investors of any natural risk tolerance typically make their portfolios more conservative in the years approaching retirement. As this adjustment reduces growth expectations, investors may need to increase contribution amounts to keep their portfolios aligned with their investment objectives.

Capitalize on opportunities

When cash flow increases, you gain the opportunity to boost the amount you regularly invest. Such an increase may result from a salary raise, children becoming financially independent, a spouse reentering the workplace, or finally paying off the mortgage. Ramping up contributions could lead to an earlier retirement or enjoying an enhanced retirement lifestyle.

Teach your children

Young adult children haven’t experienced the results of compound growth and may be less motivated to save and invest. Or they may be financially unable to start just now. Imagine giving a child a cash gift that she or he deposits into a registered plan. Let your child know that at a 5% annual return, the single deposit will more than double after 15 years. In other words, most of the money is investment growth – not the original contribution. Your child may appreciate the value of saving.

If you ever wish to discuss your regular contribution amounts or investment objectives, please feel free to get in touch with us.

This material was prepared for and published on behalf of the representative named herein and is intended only for clients resident in the jurisdiction(s) where their representative is registered. This material is provided solely for informational and educational purposes and is not to be construed as an offer or solicitation for the sale or purchase of any securities or as providing individual investment, tax or legal advice. Consult your professional advisor(s) prior to acting on the basis of this material. Insurance products are available through advisors registered with applicable insurance regulators. Individual equities are available only through representatives of Assante Capital Management Ltd. In considering any particular investment, please remember that past performance is no guarantee of future performance. Although this material has been compiled from sources believed to be reliable, we cannot guarantee its accuracy or completeness. All opinions expressed and data provided herein are subject to change without notice. Neither Assante Financial Management Ltd. or Assante Capital Management Ltd. nor their affiliates or their respective officers, directors, employees or advisors are responsible in any way for any damages or losses of any kind whatsoever in respect of the use of this material. Certain names, logos or graphics herein may constitute trade names, trademarks or service marks (“Trademarks”) of CI Investments Inc. and/or its affiliates or of third parties. The display of Trademarks herein does not imply any licence has been granted to any third party. Assante Capital Management Ltd. is a Member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada. Copyright © 2019 Assante Wealth Management (Canada) Ltd. All rights reserved.