It's time to get started.
If you're just beginning to think about saving for retirement or financial plan, it can be tough to know where to turn first. But the world of finance doesn't need to be intimidating. Here's a quick guide to some commmon questions:
What is an RRSP?
An RRSP is a Registered Retirement Savings Plan, which can contain many different kinds of investments, including stocks, bonds, mutual funds and others. Investments in your RRSP are sheltered from tax until you take the money out, and your contributions can earn you income-tax credits each April. We can help you manage your RRSP to get the most of this tax advantage, and we can also help you use your RRSP to meet your retirement goals.
What are mutual funds?
Mutual funds are group investments made up of other kinds of investments, managed by finance professionals. A mutual fund may include shares of publicly-traded companies, or bonds, or any of several other kinds of securities. When you buy units of a mutual fund, you are really buying a cross-section of all the component investments. Different mutual funds have different investment styles, ranging from conservative to aggressive. Charanduk Financial Services can help you find the mix of mutual funds that's right for you.
We can also help you ensure that the mix of funds in your portfolio is always optimized. Working with a team of Chartered Financial Analysts from Paterson & Associates, we have developed a program which allows us to precisely measure the risk associated with a given portfolio on a monthly basis. This means we can offer suggestions and make investment adjustments before major problems emerge.
This chart shows how important it is to find the right mix of funds, to ensure stable returns in any economic environment:
Illustration using
Annual Target Return of 8%
|
Scenario 1 |
Scenario 2 |
| Year |
Return |
Investment Value |
Return |
Investment Value |
1
2
3
|
8%
8%
8%
|
$100,000
108,000
116,000
125,971
|
8%
(8%)
27%
|
$100,000
108,000
99,360
125,971
|
How do you start investing?
The best way to start is by talking to a qualified, experienced investment professional who will take the time to explain the process to you. Even if you don't have a lot of money to invest, it's better to start sooner than later. The earlier you start investing, the harder your money will work for you.
What should you pay attention to in a financial plan?
There's no single answer. Factors such as your income, your age, your lifestyle and your retirement goals are all important in shaping a financial plan. Charanduk Financial Services can help you put together a plan built around your individual needs. Call us for a no-obligation consultation.
