[투자] You deserve breaks.Your money doesn’t.

* 내가 사용하는 모바일 온라인 주식거래 회사앱에서 보내준 자료인데 유용한 정보라 생각됨....

Most people already know a few things about money. Like how putting it in the market or an interest-bearing account is usually better than a hole in the backyard. Or how you should do your best to avoid credit card debt, or how — and your parents really couldn’t have been more right about this one — you should never put it in your mouth. ​ But there are a lot of other smart things that smart people do to make sure their money is constantly working to make them more money. And those things don’t tend to change because of drawdowns like the one we’re experiencing in the market right now. ​ Here are five ways to make sure your money is working hard for you.

STRATEGY #1

Start early

The earlier you start investing, the more money you stand to make. Put another way, you can save less and have more. It’s all thanks to compound returns. If you automatically invest the returns on your investment, you have a larger investment, which can mean larger returns, which can lead to a larger investment, and so on. It’s like a big, rolling, constantly growing snowball. Of money.

 

 

STRATEGY #2

Don’t fund someone else’s retirement

A 2% management fee (the average for Canadian mutual funds) may not seem like much, but like sun exposure, the damage really adds up over a lifetime. Compared to the 0.7% management fee you can find at lower-cost institutions, that’s hundreds of thousands of dollars you’re putting into someone else’s pocket instead of your own.

 

 

STRATEGY #3

Take timing out of the equation

Markets can be volatile; smart investors are not. If you react to every bad headline by pulling your money out of the stock market, you might miss some of the bad times, but you might miss a lot of the good times too. Why’s that? Because once you feel comfortable enough to get back in the market, a lot of the recovery may have already taken place. By automating your investments, you remove the biggest possible source of error from investing: you.

 

 

STRATEGY #4

Spread that $$ love around

Just like no one knows the best days to invest, no one knows which asset class will come out on top in any given year either. Spreading out your investments among stocks, bonds, and other assets — and putting meaningful risk into each of them — can help reduce the chance of missing out on gains in specific sectors, and help insulate you from big drops in others.

 

 

STRATEGY #5

Skip taxes where you can

Some of you may have seen this chart before, but we think it’s so important that we’re including it again. When the government gives you the chance to lower your taxes, you should take it. But deciding on the right tax-sheltered account to use can be… stressful. At least it can be without a simple flow chart like this one to help you through the decision.

 

As always, if you need any help, please reach out.

Scheherazade Hasan Advisor, Digital Advice