What does a safe investment mean to me?
Here are statements people sometimes make when looking for safe investments. Think about how important each one is to you and use this information to guide your investment choices.
- I must know ahead of time exactly what I'll make on the investment. Even if this means I'll make less than I could on other investments, I prefer to know how it will all work out.
- There must be little or no chance I'll lose money. I don't want to wake up one morning and find out I've lost all of my money.
- I want my money to grow steadily, with no ups and downs along the way. I don't like to worry that my investment might not work out.
- My money must grow at least as fast as prices rise. That way, the dollars I have today will be worth the same or more in the future.
- I can get my money out when I need it. If something comes up, I know I can tap into my savings quickly, without paying a big penalty.
Remember: Not all investments are equally safe
If you don't want to take chances with your money, you may have to choose ones that grow more slowly. You'll likely have fewer surprises along the way.
How much risk is right for you? Take the Investor Education Fund's quiz. It can help you understand your tolerance for risk.
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.