How much should you invest and where?

Deciding how much to invest involves thinking about how much money you have saved, how much you are earning, and your current and future financial needs.

Think about when you will need to withdraw your money. Are you saving for a car that you hope to purchase next month? A rainy day fund that you might have to access quickly? Or, are you saving for your children’s education or for your retirement, which means you will be investing over a much longer period.

There are many different types of investments designed for short-term, medium-term or long-term investing.

Be sure the investments you choose suit the time period that meets your needs.

If you are interested in investing for a shorter period of time (for example, if you are saving to make a major purchase within the year), you would likely choose to put your money into a fund that is designed to preserve your capital. One way to preserve capital is to investmet in a low-risk fund. This type of fund will likely not increase or decrease as much or as quickly over time as a high-risk fund. It is important to note that if you choose a low-risk fund, your investment may not grow as much over a longer time period compared to a high-risk (more volatile) fund.

Planning for major life events can impact your savings and investment patterns. A financial advisor can help you determine the right mix of investments that suit your needs.