Better to start now than not at all.
Most industry experts will tell you the earlier you start saving, the better. While that adage still holds true, it’s also good to remember one of our favourites – Better late than never!
It doesn’t matter how old you are, the important thing is to start saving now. Saving can help you develop smart habits and give your money more time to grow.
By getting started now, you may accumulate more than you think and be able to reach your goals, whether it is to fund a family vacation, your child’s education or a comfortable retirement.
Here are some strategies to consider when getting started:
- Set up a pre-authorized purchase plan – A pre-authorized contribution (PAC) plan is an automatic deduction from your account each week, month or other frequency – you can start to accumulate assets in smaller amounts and let those assets grow until you need them. If you started saving later in life and have less time for these assets to accumulate, you may need to save a bit more on a regular basis to help meet your financial goals.
- Choose the right investment types. The one is a bit trickier and should be discussed with your financial advisor before you make any decisions. Learn more about choosing the right investment mix.
- Choose the right account types. Depending on when you’re getting started, and based on tax and other considerations, your advisor may recommend you set up a registered retirement savings plan (RRSP), tax-free savings account (TFSA) or a non-registered savings/investment account. The type(s) of account(s) you choose will impact when and how you can access your savings and will have certain other restrictions and tax implications that you should consider. Your advisor can provide the guidance you need.
For more information on getting started on saving – no matter what your stage of life, visit AGF.com. If you want to know how to find the right advisor for you, read How to choose a financial advisor.
The contents of this Web site are provided for informational and educational purposes, and are not intended to provide specific individual advice including, without limitation, investment, financial, legal, accounting or tax. Please consult with your own professional advisor on your particular circumstances.