HOW AND WHERE TO INVEST YOUR MONEY WISELY IN CANADA
Making investments has and always will be, risky. However, there are different levels of investment, wherein a person can choose how much they are willing to risk. Investing is a viable source of income. Not only that, but if you just happen to strike gold – well then you’re in for quite the surprise. The rewards, when it comes to investing, can be huge! This is why it’s understandable that many people are willing to take risk despite possible losses.
Now, there are things to keep in mind when investing money. The numbers of available platforms that will help you choose a place to invest in, are numerous. However, before any of that – one should learn how to make investments safely.
How to make and where to make investments in Canada
- Time Horizon – This is something you have to keep in mind when thinking about what you want to invest in. A person’s time horizon is the time limit in which a person expects to get the results. Depending on what you’re investing in, whether it is furthering your secondary education, buying a home, getting a car, etc. these are all time horizons. If you’re looking to get that car or buy that home in the near future, then it’s best to start of investing in investments that are low risks and promises quick rewards.
- More Risk = More Reward – Now, this is something that is to be expected. The more money you invest in something, the more money you’ll get back. The same can be said when making an investment on something that is just starting up.. Being one of the first investors on a project is huge, and can equal to humongous rewards, but it’s also something not many people are willing to risk.
- Task-free Savings Account (TFSA) – This is a program that allows Canadian citizens to make money without any taxes involved! This is a good way of investing your money into something and receiving maximum returns! It’s a steal of a deal, and something everyone with the capabilities to sign up for it, should do. This account allows you to take out as much money as you want, anytime you want. There is a limit to how much money you can put in, but that’s a number that goes up year after year.
- Registered Retirement Savings Plan (RRSP) – This is another program provided by the Canadian government, and can be used in tangent with the TFSA. The difference between the two is that the RSFP includes tax-deductible benefits, meaning you won’t have to pay all of your taxes. However, you might be taxed on the money you use if you go outside of the plan, but for the most part, it is tax-free. The limit for this is flexible, in that it’s dependent on an individual’s income (at around 18% of what you had earned during the last year.)
- Investment Advisors – As for where you should invest, consider getting an investment advisor, these people connect you with trustworthy places to invest in, all at the risk-level and price-ranged that is suited to your exact needs.