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Your Money Matters
July 2007 Issue
The Value of Staying Invested |
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Once
you set up your RRSP and have chosen your investments, it’s
important that you stick with your plan and remain invested over the
long-term. A number of studies have shown that investors over the
years will either try to time the markets or chase investments that
have performed well in the past. And while this can be
understandable behaviour, making decisions based on emotions, such
as fear or greed, are rarely in your best interest over time.
The
question you must ask yourself is “how confident am I that I can
beat the market?” If fear is the primary motivating factor behind
making an investment decision, it may be best to reconsider and
stick with your long-term financial plan.
Talk
to a financial advisor, know your risk tolerance, your investment
horizon, and your investment objective. Once you find a suitable
asset allocation that you’re comfortable with, stick with it.
Review your investments with your advisor once yearly. Make
adjustments as your life stages change, ie: job change, birth of a
child, marriage, divorce, retirement, etc.
Market commentary:
https://www.tdadvisor.com/Download/InvestmentUpdateJuly2007.pdf
*Excerpts
from the Spring/Summer edition of Solutions for financial planning
magazine, by Manulife Investments.
If
you would like to receive a free quarterly copy of the magazine,
please contact us.
Theresa Wever and the Money
Concepts Team.
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