Approximately 5% of Canada’s labour force works in the financial sector. For the other 95%, the topic of investing might be intimidating.
Deciding where to invest is an important part of financial planning, and there’s no shame in admitting, “Umm, I’m not sure where I should invest my money”. The good news is there are a number of resources that can help you. Remember these two golden rules:
It’s all about diversification – don’t put all your eggs in one basket
Diversifying your investments doesn’t mean having different accounts at different banks (for one thing, it’s not worth the management fees). Diversifying means reducing the overall risk of your investments by acquiring different kinds of investments.
Evaluate the risk vs. the return
Make sure the risk is worth the reward. Make sure to always keep your risk tolerance in mind when making investment decisions; try to find the right balance that will help you achieve your goals.