The Five Steps to Investment Planning

The Five Steps to Investment Planning

For a long time, there were limited options for most investors. But now, there are hundreds of investments you can choose from. For a lot of people, this amount of choice can be overwhelming. Fortunately, an Investment Funds Advisor can help you figure out what the right investment choices are for you.

Meeting your Investment Funds Advisor

When you first meet with your Investment Funds Advisor, they will tell you about their obligations and responsibilities. They should:

  • Give you general information about your various investment choices
  • Tell you how they are compensated for their services
  • Ask if you have any questions about specific investment vehicles (such as RRSPs or TFSAs)

Determining your goals and expectations

The next step is to for your Investment Funds Advisor to fill out a “Know Your Client” type of worksheet. The information on this worksheet will help your Investment Funds Advisor determine the most suitable investment options for you. You’ll need to provide information on your:

  • Income
  • Net worth
  • Investment knowledge
  • Risk tolerance
  • Time horizon (how long you want to invest for)
  • How frequently you want to invest

Developing your investment plan

Once they have all the information they need, your Investment Funds Advisor will suggest the investments they think are appropriate for you. Most Investment Funds Advisor recommend purchasing mutual funds or exchange-traded funds (ETFs) as they have relatively low costs and contain a wide variety of stocks and bonds.

Implementing the plan

Once you approve your advisor’s suggestions, you will fill in all the appropriate paperwork to set things in motion. After that, you must provide a way to fund your investments. Your Investment Funds Advisor can then make any initial purchases and set up any ongoing fund purchases or transfers from other investments.

Monitoring the plan

Your Investment Funds Advisor should get in touch with you at least once a year to make sure your plan is still right for you and discuss any changes you want to make to it. If you have any major life events such as getting married or changing jobs, you should contact your Investment Funds Advisor to see if you should revisit your plan.

The sooner you start planning for retirement, the sooner you can get there! Contact us today!