Investment Planning

Money is needed at various stages of our life most important being down payment for a home, education of your kids and retirement. Unforeseen circumstances resulting from an accident or illness have already been taken care under the insurance sector. Besides, there should always be 3 months expense worth of funds lying in easily accessible investments or cash to take care of sudden unforeseen needs.

Retirement is becoming a major concern in our minds today with the near extinction of guaranteed benefit pension plans from work. By the time the young generation today retires, the pressure of huge gray population on fewer young tax payers might lead to a slash down of Old Age Security Pension too. The bottom line is that you need to save.

There are many investment options available in the market place but best are the ones which allow you to take advantage of growth in the market while protecting your principal from getting lost.

If a 25 year old person saves five dollars every day and invests in an option that bears 5% in the long run he will have approximately $300,000 at age 65 to take care of his old age. This could provide him with an income stream of more than $1500 per month till age 90 invested at the same rate.

Insurance companies offer Segregated Funds which have certain guarantees built in upon maturity / death of the investor. There is a wide range from which to choose. I help you choose the funds depending upon your risk profile, investment goals and stage in life. These funds could be purchased as Non-Registered investments or for your RRSP. You could name a beneficiary in these funds. These funds provide best results in medium to long term.

If you are nearing retirement and have amassed wealth, you want that money to last throughout your life to take care of your expenses in old age. You could buy an Annuity that ensures that you won’t outlive your savings. It helps you cover your essential expenses in retirement and the money flows in on a tax favored basis. Life Annuities provide peace of mind and take away market exposure element from your hard saved money. When it comes to retirement income, most investors prefer and income stream that is guaranteed and annuities give you just that.

Some insurance companies also offer Guaranteed Investments for an income stream in which they guarantee a minimum return on your investment or and you can get more if the market returns are higher. Your money keeps growing and you could opt for an income supplement as early as age 55. This investment provides potentially increased income stream to pace up with inflation. It provides tax efficiency if held in a Non- Registered account. There is potential creditor protection too. This tool can provide amazing results if started early in life. This is a guaranteed benefit pension which you create for your own self.

Not only there is a need to invest according to your stage in life but there is also a need to review your investments from time to time to monitor the working of your financial plan. Certain types of investments allow the funds to be changed within the investment. Also, needs change time to time and reviews take care that you are addressing your needs according to the changes to make sure that the end goals are attained in a timely fashion.