5 quick tips for first-time investors
If you’re a first-time investor, the range of options may seem intimidating. Here are five tips that can help you make good investments:
- Start saving early. It’s never too early to start saving for your future. Take advantage of the power of compounding by saving as soon as you can—every little bit counts!
- Invest regularly to take advantage of dollar-cost averaging. When you make regularly scheduled contributions to your retirement savings, rather than attempt to time the market randomly throughout the year, you dramatically increase your odds of capitalizing on short-term dips and buying low. When this happens, you are able to buy more mutual fund units with the same contribution amount.
- Stay the course and ignore market fluctuations. When markets decline for an extended period of time, it can be hard to stay invested and you may be tempted to stop investing for a while or sell some of your investments.
- Diversify. It’s a good idea to put your money into several different investment products, or diversify, because certain types of investments tend to move higher while other decline. For example, stock prices rarely move in tandem with bond prices. You can diversify by investing across all major asset classes, including equities*, bonds* and other fixed income securities*, cash, and cash equivalents* (treasury bills and Guaranteed Investment Certificates – GICs).
- Understand market risk. Market risk is how much market value and investment returns fluctuate. Generally, the more volatile an investment is, the greater potential return there is. On the flip side, lower risk investments typically deliver lower returns and are less volatile. To reduce risk, start investing as early as you can (so you have time on your side) and diversify your investments.
Get help from a G&F investment specialist.
G&F’s Credential Securities and Credential Asset Management investment specialists can access a full array of investment solutions: such as mutual funds*, low-cost investment options*, socially-responsible investing options*, stocks and bonds* and sophisticated discretionary management solutions*.
Our approach is centered around you, as our member. We put your interests first. Our investment specialists provide unbiased advice so you can have confidence you are receiving advice in your best interests. You can feel confident you are making a good investment.
We are committed to providing full disclosure about the level of investment risk associated with the various products we offer, as well as their potential rewards.
*Mutual funds are offered through Credential Asset Management Inc. Mutual funds and other securities are offered through Credential Securities, a division of Credential Qtrade Securities Inc. OnPoint Managed Portfolios are distributed by Credential Securities. Referral fees, commissions, management fees, and expenses all may be associated with managed accounts or the investments therein. Please read the prospectus before investing. Managed accounts, and the investments therein, are not insured nor guaranteed, their values change frequently and past performance may not be repeated. Credential Securities is a registered mark owned by Aviso Wealth Inc.
Online brokerage services are offered through Qtrade Investor, a division of Credential Qtrade Securities Inc. VirtualWealth is a trade name of Credential Qtrade Securities Inc.
IIROC Advisor Report.