Many people make it to retirement age before they realize that they don’t have the money to live the way they were before retirement. Here are some things that you can do including the best way to invest money in Canada now so that you don’t have this same unfortunate situation happen to you.
Take A Financial Snapshot
You’ll be on your way to investing the best way by planning first. Sit down and make a list of all of your assets and liabilities. Outline all of your financial accounts. Be realistic and keep everything you can think of on the list. Don’t take something off because you’ll be paying it off soon or because you see it as being minor. This is the first thing you need to do before you start investing.
Work on Your Retirement Account
When seeking out the best way to invest money in Canada, look to your employer for help. You're not asking for a handout, of course, but what we mean is if see if your company has a retirement account match. If you have a retirement account through your job, contribute as much as you can up to the company’s match. This is a great way to build wealth in retirement before you ever get there.
Pay Off Your Debt
If you have high-interest credit cards, pay these down. On the financial snapshot, you took in step 1, rank all of your debts from highest interest rate to lowest. This way, you know which ones you have to pay off first because they’re a higher priority and costing you more. Start off by paying the minimum payments. Once you have one debt paid off, roll over the amount you were paying on that debt to the next one, and so on.
Build A Six-Month Emergency Fund
Calculate all of the expenses that you have right now and multiply that sum by six. Your next step is to build an emergency fund that’s equal to six months of expenses. This will cover necessary living expenses in case the unexpected happens, like a job loss or sudden home or vehicle repairs.
Research Other Investment Avenues
Now that you have your emergency fund built up and you’re out of debt, you’re ready to consider opening a brokerage account to chase after some other lucrative investment opportunities. There is a wide range of different investment products out there to choose from. So, whether you open a brokerage account and invest in different kinds of products like stocks and bonds, mutual funds, or certificates of deposit, you’re on your way to becoming a savvy investor.
You don’t want to get to retirement expecting to take cruises and travel the world with your significant other before you realize that you hadn’t been properly planning and won’t be able to afford your life. By taking some critical steps now, you can prepare for your retirement years and have a high quality of life as well. When you’re looking for the best way to invest money in Canada, give us a call at Doc’s Consulting, and we’ll help you navigate your best next steps.Best Way To Invest Money In Canada