Are you likely wondering what to do to increase the return on your investments? The best investment strategy is one that reflects your projects, your retirement dreams, your personal situation and your risk tolerance. It’s easier than you think! Basic rules of thumb If you want investments with a higher return potential, then you need to be aware that they will also have a higher risk potential. On the other hand, if you want investments with a lower risk potential, then you can expect a lower return potential. Unless you’re investing in guaranteed investment certificates, your investments will fluctuate over time and according to economic circumstances. Historically, equities have outperformed fixed income. Although you have the potential of gaining more growth from equities than fixed income, equities tend to have a higher potential for risk. Age makes the difference Far from retirement? You should have more equities in your portfolio the further you are from retirement, since you’ll have the time to ride out the ups and downs of the market and achieve growth. Approaching retirement? You should have more fixed income and fewer equities in your portfolio so you can preserve the capital you’ve already accumulated and not get caught if the equity market is down. Fixed income is more conservative and tends to provide more steady returns. Risk tolerance Everyone has a different tolerance for risk. Your lifestyle, financial situation and where you live all contribute to your investment preferences. What’s more, different life events such as having children or buying a house may affect your investor profile. Time is on your side Consider the length of time you have to let your savings accumulate before you need them. The more time you have to smooth out the ups and downs of the market, the more risk you may be willing to take. The best strategy is to invest according to your investor profile and to re-evaluate your investor profile every couple of years or as your life situation changes. Making regular and consistent investments is an excellent way to keep time on your side. Automate your contributions by setting up pre-authorized transfers between accounts or by having a set amount deducted from your pay (if this option is offered by your employer). Your group retirement plan offers a variety of investments so you can choose an offering that corresponds to your specific investor profile. See the  secure section to determine your investor profile. This will help you make the best investment choices to suit your needs!

Are you likely wondering what to do to increase the return on your investments? The best investment strategy is one that reflects your projects, your retirement dreams, your personal situation and your risk tolerance.

It’s easier than you think!

Basic rules of thumb
If you want investments with a higher return potential, then you need to be aware that they will also have a higher risk potential. On the other hand, if you want investments with a lower risk potential, then you can expect a lower return potential.

Unless you’re investing in guaranteed investment certificates, your investments will fluctuate over time and according to economic circumstances. Historically, equities have outperformed fixed income. Although you have the potential of gaining more growth from equities than fixed income, equities tend to have a higher potential for risk.

Age makes the difference
Far from retirement? You should have more equities in your portfolio the further you are from retirement, since you’ll have the time to ride out the ups and downs of the market and achieve growth.

Approaching retirement? You should have more fixed income and fewer equities in your portfolio so you can preserve the capital you’ve already accumulated and not get caught if the equity market is down. Fixed income is more conservative and tends to provide more steady returns.

Risk tolerance
Everyone has a different tolerance for risk. Your lifestyle, financial situation and where you live all contribute to your investment preferences. What’s more, different life events such as having children or buying a house may affect your investor profile.

Time is on your side
Consider the length of time you have to let your savings accumulate before you need them. The more time you have to smooth out the ups and downs of the market, the more risk you may be willing to take. The best strategy is to invest according to your investor profile and to re-evaluate your investor profile every couple of years or as your life situation changes.

Making regular and consistent investments is an excellent way to keep time on your side. Automate your contributions by setting up pre-authorized transfers between accounts or by having a set amount deducted from your pay (if this option is offered by your employer).

Your group retirement plan offers a variety of investments so you can choose an offering that corresponds to your specific investor profile. See the  secure section to determine your investor profile. This will help you make the best investment choices to suit your needs!

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