Are You Playing It Too Safe?

Paula Munro — B. Comm, CFP®, FMA, RIS, Wealth Specialist, Credential Asset Management Inc.
Paula Munro
Paula Munro

B. Comm, CFP®, FMA, RIS

Wealth Specialist

Credential Asset Management Inc.

Book an appointment

Investors’ approaches to the markets can be very different.

Some people are not concerned with short term volatility, while others are too afraid to even invest into the markets.

Determine Your Objectives

When choosing how to invest, those who fear taking any risk may choose to stay in cash, or cash alternatives such as money market funds and guaranteed investment certificates.  What some people do not understand is that holding too much of any one investment including cash, may impact your ability to reach your long-term financial goals.

One of the keys to successful investing is to determine what your risk and objectives are, and then to build the proper asset allocation to meet your long-term goals. 

Time Horizon

Keeping in mind your time horizon is also a very important aspect as to how to best invest.  

Having a balance among different asset classes is usually the best solution to achieving your overall goals.  Being invested solely in cash alternatives can pose the risk of inflation.  Inflation can eat away at your assets and even reduce your purchasing power over the long term.

Risk Tolerance

Some people may want to wait until market volatility comes to an end before taking any risk, but there will always be different types of risk involved.  

Once you have built a portfolio with an asset allocation that meets your risk tolerance and overall objectives, reviewing your plan, and maintaining the proper asset allocation is key.  Well diversified portfolios provide a better combination of capital preservation and growth potential.

Innovation Wealth Can Help

Meeting your financial goals requires an asset allocation strategy that has a balance between downside protection and upside participation. Please talk with your Investment Advisor today to ensure your level of cash and equities are appropriate for building and maintaining your long-term goals!

Mutual funds and related financial planning services are offered through Credential Asset Management Inc.

My Plan

A retirement plan customized for you!

Start your plan today!

Starting an RESP?

With rising education costs, feel better prepared.

We can help

Reasons to consolidate your investments with one advisor

We can help