When it comes to managing our savings, many of us think we lack the knowledge and investment savvy to succeed on our own.
The majority of Canadians work with a financial advisor to develop a financial plan and stay on track,
Here are five habits to help you get the most out of your advisor:
- Have a plan. It doesn’t have to be elaborate – just one that makes sense for your short-term and long-term financial goals. It can be as simple as putting a set amount of money aside for a rainy day or as significant as developing a longer term plan for your retirement.
- Save a little every month. We’ve all heard the rule-of-thumb that you should “pay yourself first” by putting money into savings. But with so many opportunities to spend, it’s easy to slide. Sign up for an automatic savings plan and watch the miracle of compounding help your savings grow.
- Open your statements. It sounds simple but many people don’t bother to open their investment account statements. Take the time to read your statements and ask your advisor about anything you don’t understand.
- Communicate. Be sure to keep your advisor up-to-date on any changes – both good and bad – that might affect your financial situation. Deciding what to do with added income from a raise is as important as adjusting your plan to deal with a job loss.
- Meet regularly with your advisor. Do it even if there are no changes. Take your statements to the meeting and ask questions about anything you don’t understand.
In 2017, you began receiving two annual reports. The reports outline information related to the performance of your funds and the costs of your investments under an initiative known as CRM2
Get the most out of the new reports by becoming a more informed investor and building good savings habits.