To get enough income, many Canadians depend on making their savings grow after they retire. Choosing the right investments is critical. Here are some key questions to consider as you decide what to do.
- Should I invest for safety or growth?
- How do I balance risk and return?
- What will it cost to invest?
Look for ways to grow your savings with a level of risk you can tolerate. If you invest only in very safe options, your savings may not last as long as you will need them.
Three tips for investing after you retire
1. Spread it out: Asset allocation means spreading your money out across different types of investments. If one type of investment falls in value, another may grow, helping to balance things out.
2. Rebalance your portfolio regularly: In your earlier years, you may have worked out a plan for investing and rarely changed it. Your needs may change more quickly now. Changes in the economy may hit you harder. Take charge and review your portfolio at least once a year.
3. Minimize fees and commissions: If you're not careful, these can really add up. Costs for investing may include:
- Fees on investments such as mutual funds
- Annual trustee fees for Registered Retirement Savings Plans and Registered Retirement Income Funds
- Account set-up, transfer and processing fees.
- Always know what you're paying and shop around for the best deal.
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Content in this section is provided in partnership with the Investor Education Fund, a non-profit organization promoting financial literacy to Canadians. To find out more go to GetSmarterAboutMoney.ca.