January 21, 2021 | By: Sound Choices

Ready to Start Investing? These Top Tips Can Help

2 min read

1. Know what you’re saving for

Is your financial goal to fund your retirement in 30 years, buy your first home in the next three years or something else?

Knowing what you’re saving for will help you figure out how long you have to save (your investment time horizon) and how much you’ll need to save each month to get there.


2. Consider your monthly budget

Think about what you would be willing to cut back on. For example, cutting out a $5-a-day coffee habit could help you save $100 a month. By investing regularly and following a consistent investment plan, you can take advantage of the benefits of compound growth, regardless of how much is invested.

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Source: AGF Investments Inc. The table above is for illustrative purposes only. All of the rates and values referenced above are hypothetical and do not reflect actual investment or past performance, nor do they guarantee future performance. Based on hypothetical returns of 3%, 5%, and 7% and $100 monthly PAC contributions every year over the period.

3. Monitor your progress

Be sure to monitor your progress. If you’ve faced unexpected expenses or life events, you may need to adjust your goals or your time horizon. For example, you may need to save for a down payment on your first home over five years instead of three.


4. Determine how comfortable you are with risk

There are many different investment options on the market and each comes with its own level of risk. Typically, the higher the potential return of an investment, the higher the level of risk.

Are you comfortable with losing money on your investments from time to time, knowing that you could gain it back (and then some) over the longer term? Or do you lose sleep over the thought of your capital going down in value?


5. Work with a financial advisor

This article just scratches the surface of starting out as a new investor. There are many investment options available to you and other factors to consider, like diversification, liquidity, trading costs, account types and investment fees.

A financial advisor can work with you to choose investments that align with your financial goals, time horizon and risk tolerance. An advisor can also help you maintain a regular savings discipline so you can grow your money steadily over the long term.


Don’t have a financial advisor? Before you start your search, read about working with a financial advisor.


 

The commentaries contained herein are provided as a general source of information and should not be considered personal investment or tax advice. Every effort has been made to ensure accuracy in these commentaries at the time of publication; however, accuracy cannot be guaranteed. Market conditions may change investment decisions arising from the use or reliance on the information contained here.

The contents of this Web site are provided for informational and educational purposes, and are not intended to provide specific individual advice including, without limitation, investment, financial, legal, accounting or tax. Please consult with your own professional advisor on your particular circumstances.

AGF Management Limited (“AGF”), a Canadian reporting issuer, is an independent firm composed of wholly owned globally diverse asset management firms. AGF’s investment management subsidiaries include AGF Investments Inc. (“AGFI”), AGF Investments America Inc. (“AGFA”), Highstreet Asset Management Inc. (“Highstreet”), AGF Investments LLC (formerly FFCM LLC) (“AGFUS”), AGF International Advisors Company Limited (“AGFIA”), Doherty & Associates Ltd. (“Doherty”) and Cypress Capital Management Ltd. (“CCM”). AGFI, Highstreet, Doherty and Cypress are registered as portfolio managers across various Canadian securities commissions, in addition to other Canadian registrations. AGFA and AGFUS are U.S. registered investment advisers. AGFIA is regulated by the Central Bank of Ireland and registered with the Australian Securities & Investments Commission. AGF investment management subsidiaries manage a variety of mandates composed of equity, fixed income and balanced assets.

® The “AGF” logo and “Sound Choices” are registered trademarks of AGF Management Limited and used under licence.
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