Pinpoint your goals to make the right investments
(NC) As we approach the deadline to make a Registered Retirement Savings Plan (RRSP) contribution, now is a great time to review our entire investment portfolio to make sure it aligns with our financial goals. No matter whether retirement is many years away, just around the corner or already here, investors can implement strategies now to make the most of their money.
“One of the basic rules of a sound portfolio is that your investments should progressively become more conservative as your time horizon shortens,” says Robert Armstrong, the vice president and head of managed solutions at BMO Global Asset Management. “However, as simple as this concept may seem, many of us don't get around to properly balancing our investments, often due to a lack of time, knowledge or convenience.”
According to a BMO study, 89 per cent of Canadians agree that it's important to hold investments that evolve over time to become less risky as milestone dates approach. However, despite this, fewer than half feel that their investments become less risky over time.
Armstrong suggests that if you are seeking investment options to match your current age, life stage and risk tolerance, take a look at BMO SelectTrust Portfolios and at ETF Portfolios in a trust structure. These funds offer a series of six risk-differentiated options, including fixed income, security, conservative, balanced, growth and equity growth.
“No matter whether an investor is conservative, bold, somewhere in between,” says Armstrong, “or is approaching a key life event and wants investments that match his or her risk level, there is a portfolio tailored to their needs.”
Speak to a financial professional for more information or visit www.bmo.com/investments.
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