Total Income
$0.00
Total Expenses
$0.00
Monthly Net
$0.00
You are ______ in debt. You should work to pay off your debt before you invest anything.
Since you are ___ years old, your portfolio should consist of 100 - your age % of stocks, and your age % of bonds. Generally, the younger you are, the more risk you can take on, and vice versa. Elderly people should invest most of their portfolio in bonds as it is a very stable and safe investment.
Since you do not have a lot of financial assets available to you at the moment, it is best to invest in less risky investments.
Less risky: ETF’s, index funds, bank stocks
Since you have a lot of financial assets available to you at the moment, you are free to invest in more risky investments.
More risky: regular stocks, preferred shares, leveraged ETFs, foreign exchange
Investing Tips:
The money you gain from investing is taxed only half of what would have been taxed if you earned it from a job.
Diversify your investment portfolio: make sure you invest in a wide range of industries.
Do not try to short-sell, or bet against a company’s success. Always invest with the market.
Budgeting Tips:
You should decrease your expenses in this section: the one that has the most percentage of expenses.
Spending Tips:
Track your spendings and cut out unnecessary expenses
Don’t make impulsive purchases
Make small purchases with a credit card that you are sure you can pay off; build a good credit score
Resources:
Always make sure your deposits are CDIC insured. It includes savings/checking accounts, GICs, term deposits, and foreign currency. It protects up to $100,000 of your money per account in case of a failure.
https://www.cdic.ca/
Take advantage of TFSAs and RRSPs.
The TFSA is an investment/savings account that has many benefits including being flexible and having a great tax benefit. There are no taxes incurred on the money we deposit, and there are also no taxes on any capital gains in that money while it’s in our account. On the other hand, the RRSP is a savings account that allows us to invest money for our retirement, deferring taxes until we are old and thus we will end up paying lower taxes on that amount. The RRSP also provides a higher contribution limit but also has strict rules and restrictions about withdrawing our money from the account.
If the person is more concerned about saving money for an upcoming purchase or for a shorter time frame, the TFSA is the better option. If the investor is mainly concerned about their retirement fund, the RRSP is the better option. Deciding between a RRSP or TFSA can also be dependent on the age of the individual. For young people, a TFSA would be the better option. For people who are older and have some sort of job stability, a RRSP would most likely be a better option.
https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/tax-free-savings-account.html
https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/rrsps-related-plans/registered-retirement-savings-plan-rrsp.html