Your Money

If there is anything that the recent financial crisis has taught us, it is that there is no such thing as an investment which is 100% safe. Even people with secure online investments saw their retirement funds dissipate during the stock market crash of '08, and we're still looking for the full rebound. In this kind of climate, people are understandably reluctant to put their hard earned money back into the markets.

However, investing is still a good idea, and it's still something that most people will again do, even if it takes some time. The big question for most is, what is the best place to invest? Should you sink your money into reliable, but expensive and slow to appreciate gold mutual funds? Or is real estate a better idea? Just who should you go to with your money anyway, a bank or a broker?

Those are all good questions, and the answers will differ depending on who you talk to. What we want to do here is give you a bit of a foundation to build on in order to make sound decisions with your money.

The first thing to look at, of course, is your month to month earnings and how they fit in with your budget. What is the amount you can afford each month? If you have a business, you might want to find out if you have any extra money come tax time; maybe that R & D tax credit Canada is so proud of will provide you with a few extra dollars to put into a retirement fund.

Next, be honest with yourself about how much time you have left to build your savings account. The younger you are, the less you need to put in every month. The generation familiar with online software project collaboration and other new ideas of the Information Age should start investing now. It will mean you have a lot of money built up when you're ready to retire.

Boomers and those over 35, on the other hand, will have to invest more money in order to ensure a secure retirement. Again, you need to be clear with your advisor on just how much you can afford to invest every year.

Keep in mind, too, that it's a good idea to talk to your advisor about foreign exchange. Is it a better choice to put money into a Canadian ETF, or an American mutual fund? The former certainly looks more secure today. On the other hand, with parity looming between the loonie and the greenback, there might never be a chance to get in on the American market before it rises up again.

You have to be a bit careful about what you read in cyberspace, internet marketing Toronto to Hong Kong being what it is, but it might be worthwhile to look into markets outside of North America. Ask your advisor who's making news with their economies these days, and if you can get in on the action.