4 things for everyone to know about investing

by | Jun 22, 2024 | Finance and Business

Investing can be an important tool to help you achieve your financial goals, but not everyone knows where to start.

Thinking about investing? Consider these top tips from Royal Bank of Canada.

  1. Regardless of why you are investing, it’s crucial to have a goal – such as retirement, a new home, a child’s education or even a vacation – and then to set up a plan to help you reach that goal. It’s also important to check your progress and make adjustments along the way.
  2. Invest what you can, as early as you can. One of the most valuable assets available to investors is time. Investing for a longer period of time is widely considered more effective than waiting until you have a large amount of savings or cash flow to invest – this is because of the power of compound interest. Compounding is the snowball effect that occurs when the dollars you earn investing generate even more earnings. The longer you are invested, the more time there is for your returns to compound.
  3. Think about how you want to invest. Are you looking to manage the investments yourself? Do you want advice? Would you prefer someone who does it for you? Or do you want a combination of any or all of the above? You can choose to be hands-on, hands-off or somewhere in between.
  4. Investing regularly is just as important as starting early. Investing even small amounts of money on an ongoing basis can help smooth out returns over time and reduce overall portfolio volatility.

Find more advice on how to get started on your investing journey at rbc.com/mymoneymatters

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