Financial planning will differ from one individual to the next and one of the most important factors to take into consideration is your age. When you're young, you may be willing to take more risks with your money than you would at an older age. When you're 10 to 15 years away from retirement, however, things get a bit more serious. Here are some of the best investment options for Canadians that are getting older.
A Guaranteed Investment Certificate is always a sure thing up to $100,000. Your money will definitely grow with this investment opportunity. Right now, however, with the low interest rates as they are, the return on investment doesn't keep pace with the rate of inflation. While it’s a good idea to put some money into these investment certificates since they do offer a guaranteed return, you should also take a look at your other options.
As with the GICs, bonds aren't producing high returns either these days. If you are going to look at this investment, consider corporate bonds instead of government bonds. While they do come with a higher risk, corporate bonds also pay off with a higher-yield.
Avoid the risky startup stocks as you get older and look instead for the brand-name stocks that show signs of solid growth. These stocks will help to diversify your investment portfolio. You should look for dividend stocks that pay a decent yield – somewhere between 4% - 5%.
These are offered by insurance companies and while they are a more expensive option for the short-term, they offer a great chance to get regular retirement cheques in the future.
Real estate is one of the most important additions you could make to your investment portfolio. If you have some extra money set aside you may want to consider purchasing a small investment property that will continue to provide you with income into your retirement. If you don't have enough money, you could always think about partnering with other aging friends or family members to make the purchase.