Setting financial goals and milestones is a great idea. But it will be ineffective unless you have a clear investment plan to help track your progress. This is a critical step to achieving your long-term financial objectives. Without it, your money goals are no more than wishful thinking.
Saving money is a low-risk, low-performance way to build wealth. Investing in the market comes with the expectation that it will grow over time and, depending on the strategy you are following, it can produce considerably higher results.
Saving money is about using compounding to make your money grow. Interest accrued is added to the principle ̶ the original amount ̶ to generate even more interest. The rate of return will be modest, and bank fees combined with inflation will further reduce your efforts to accrue money.
Investing can build more wealth, but it requires the emotional confidence of someone who is willing to take some risks. Your Fidusure Financial Advisor can discuss with you the level of risk you are comfortable with taking. Historical studies have made it clear. If you invest for the long term, your money will grow faster than just keeping it in your savings account.
*Mutual funds provided through Carte Wealth Management Inc.
** Segregated funds, GICs and insurance provided through Carte Risk Management Inc.