3 Investment Tips for Millennials

 

 

Let’s be honest, investing isn’t always easy – at least it doesn’t always seem that way. With so many different options available on the market (from mutual funds to stocks), choosing the best strategy can be overwhelming. That’s where the assistance of a financial advisor comes into play.

 

It’s very easy to get caught up in hot tips, news headlines and guidance from family and friends. It seems like everywhere we look someone is giving millennials investment tips. The truth is finance is personal, and that’s why it’s so important to get tailored advice from a professional. With that being said, there are some pieces of advice that all young investors should know.

 

Here are three investment tips for millennials who want to start investing:

 

Start as early as possible

 

Yes, that’s right, young people should have started investing way before they were coined as millennials. As soon as you have an income (no matter how big or small) a portion of your paycheque should go into savings.

 

Thanks to a little thing called compound interest there are big benefits for millennials who start investing early. Compound interest helps your investments grow faster because your monthly earned interest (or dividends or capital gains) is reinvested back into your account. Therefore, the next month you earn interest on the previous month’s interest and so on for years to come. It’s brilliant.

 

Think long term with your strategy

 

According to Forbes, investing for the long term helps millennials see the bigger picture when it comes to risk versus reward in your portfolio. “Risk is kind of like that friend who regularly cancels plans but always comes through in a pinch. There might be heartache in the day-to-day, but in the long run, you’ll be glad you stuck it out.

In investing, more risk means the potential for more reward. Could you lose money and never collect that premium? Sure, but that’s unlikely when you’re in it for the long-term.”

 

Be honest with your financial advisor

 

Professional advice can help find an investment strategy that fits your individual plan, financial capabilities and life goals. However, that can only happen if you are completely honest with your advisor.

 

Think of a financial advisor as your financial doctor, they can’t totally assess the situation and provide a recommendation until they have all the information. This includes your short term and long-term goals, tolerance for risk, time horizon and general knowledge of the investing world.

 

If you have questions about investing or want to start investing but don’t know where to begin, I’m happy to help. Let’s chat about your goals and investment options for millennials.

 

*This content was originally created by Manulife Securities for information purposes only. It has been distributed for advisor publication.*

Attention Small and medium size business owners-Let’s look at some tax efficient ways to provide health and dental benefits!

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Use “Cost Plus” as a Tax Advantaged Strategy to pay your families health, dental and, certain education expenses.

Cost Plus was introduced as a cost efficient and tax effective means of providing health and dental benefits for small and medium sized businesses.

You pay your health and dental expenses as you normally would. Your business then pays

Cost Plus (the plan administrator) a payment to cover the expenses, plus an 8% administration fee (both of which are tax deductible).

Cost Plus then provides you (the employee) with a tax-free reimbursement of the expense incurred and a statement to the employer.

Cost Plus is an inexpensive way for incorporated employers and sole proprietors to provide tax free health and dental services for themselves and their dependents, their employees and their dependents.

These services, available through Cost Plus, are 100% tax deductible to the corporation or the sole proprietor.
 

Here is an example of how Cost Plus works:

“You submit your heath or dental receipts, e.g. $1,000.00 to the Cost Plus Plan including a payment from your company of $1,000.00 plus8% administration fee and 5% GST (on the administration fee only).

This is $1,084.00.

The Cost Plus Plan then reimburses you (the employee) with a tax-free payment equal to the expense incurred and provides a receipt for your business.”

For more tips or to ask questions, please contact your Cornwall Wealth Management Advisor.
 

This Blog was written by Greg Glista Financial Advisor, President Glista & Associates Partner, Cornwall Wealth Management Group Inc. & Author of Tax Advantaged Strategies.