Finance

Finance Tips & Info

Your Financial Goals & Success

The start of a new year is a good time to take stock of your financial achievements to date and establish new goals for the year ahead. Below are basic steps that can help set you up for success:

Step 1: Revisit your goals
New circumstances, changes in your personal life or relationships can affect your plans for the future. When changes have taken place, most investors want to set new financial objectives. Regardless of what your goals are and whether they have changed, breaking them down into smaller steps (and divided in periods) may make it easier to get to where you want to go. Just remember, if you fall short in one period, try to make it up in the next.
Keep in mind that having financial goals helps you determine how much you need to save and how close you are to reaching them.

Step 2: Know, analyze and review your portfolio
In order to stay on track, you have to know performance of all investments in your portfolio. Market volatility is an unknown that investors need to keep in mind. Underperformance or outperformance in your holdings may have had an impact on your asset allocation. It may have stayed away from your target, missing out on opportunities for growth, or exposing you to more risk than you're comfortable with.

Step 3: Uncover new ways to save
A pre-authorized contribution is a great way to help you boost savings and it may help you to reduce fees with some financial institutions. Also, structuring your portfolio to be tax-efficient can help you keep more of what you earn. For advice specific to your situation, consult personal tax advisor.

NOTE:
Market volatility can be nerve-wracking, even for the most experienced investor. When financial markets change quickly, it's important to remember that regardless of what financial markets are doing on a given day, the principles of investing wisely remain the same:
- A well structured portfolio and a long-term strategy are usually the most effective ways to maximize potential success.
- Don't let your heart rule your head and your portfolio.
- Try to take advantage of the downturn to reduce the impact of volatility.



Business and Finance Pages...






Getting a Financial Picture

If you want run successful business you should have real financial picture of a business. Accurate, up-to date records are very important for every aspects of your business. It's certainly not fun, but without accurate records, you simply cannot run a successful business. It is much easier to deal with various tax departments of government or with your banker if your records are complete and comprehensible. Learn more...
Understand
how your portfolio is performing
Know
what your costs are
Diversify
have effective diversification

Did You Know?

Whether you invest in fixed income, balanced or equity mutual funds, at some point you can expect the value of your holdings to fluctuate due to market performance.

It is important to stay consistent. During volatile periods, your own consistency (i.e. investing regularly and staying invested) serves as a counterweight. For example, if you invest the same amount each month, that fixed amount will actually purchase more mutual fund units during a negative month. When returns become positive again, those extra units will help your overall returns. Business and Finance Pages...