NC – Now that your career path is starting to take shape, are you thinking about retirement? This idea may not be as crazy as it sounds.
“It’s never too early to start investing in your future,” says Jim Vlahos, senior vice president at Franklin Templeton Investments Corp. “Often there’s a tendency to delay contributing to your retirement account due to other priorities like a new house, marriage, career change or children. But continuing a comfortable lifestyle later should also be given attention. Even a small amount each year can make a big difference over time.”
Here are three tips for making your first Retirement Savings Plan (RSP) contribution this year:
1. Understand your risk tolerance and time horizon. Can you take market ups and downs in stride or do you have trouble sleeping at night if there is a lot of volatility? Are you planning to retire early at the typical age of 65 years, or continue working into your seventies?
2. Do your homework. Start by gaining an understanding of common asset classes − equities help provide growth and bonds help provide stability. Safe havens do not usually exist, as even the value of cash is eroded by inflation. Diversify and ensure your portfolio is balanced.
3. Seek financial advice. Investment advisors have their fingers on the pulse of the markets and can map out a plan to help you achieve your goals while managing your risk exposure. More information on finding an advisor is available online at franklintempleton.ca.