So Where Should So Where Should

I Invest ???I Invest ???

$ Different people have different reasons to Different people have different reasons to invest, different amounts of money, etc. invest, different amounts of money, etc.

$ Because of this there is no one, true Because of this there is no one, true answer. answer.

$ There are many factors that impact on There are many factors that impact on investment decisions…investment decisions…

So Where Should I Invest?So Where Should I Invest?

Risk - RewardRisk - Reward

$ the riskier an investment is, the the riskier an investment is, the greater the chance of growth or greater the chance of growth or losseslosses

$ safe investments such as GICs safe investments such as GICs will lead to lower growth but will lead to lower growth but guaranteed securityguaranteed security

Risk - RewardRisk - Reward

$risky investments, such as risky investments, such as stocks and real estate may stocks and real estate may lead to fast and lead to fast and considerable gains or fast considerable gains or fast and devastating lossesand devastating losses

Reasons for InvestingReasons for Investing

$ if you are investing for your if you are investing for your retirement, you may wish to put it in retirement, you may wish to put it in a slower growing investment so that a slower growing investment so that the money is securethe money is secure

$ if you need growth quickly (i.e. short if you need growth quickly (i.e. short term purchase) you may try term purchase) you may try something riskiersomething riskier

Amount of Money InvestedAmount of Money Invested

$ to buy a GIC you must have at to buy a GIC you must have at least $500 and a term deposit least $500 and a term deposit requires at least $5000requires at least $5000

$ you can buy stocks or mutual you can buy stocks or mutual funds with any amount of moneyfunds with any amount of money

Future Sources of InvestingFuture Sources of Investing$ Is this a one time investment or do Is this a one time investment or do

you plan on investing monthly?you plan on investing monthly?

$ GICs and term deposits can not be GICs and term deposits can not be “added to”. You must buy new ones.“added to”. You must buy new ones.

$ stocks and mutual funds can be stocks and mutual funds can be added to on a regular basisadded to on a regular basis

LiquidityLiquidity$ the more you may need this money the more you may need this money

back, the more liquid the investment back, the more liquid the investment bebe

$ GICs and term deposits are locked in GICs and term deposits are locked in for a certain period of timefor a certain period of time

$ stocks and mutual funds can be sold stocks and mutual funds can be sold at any time (there may be a penalty at any time (there may be a penalty involved)involved)

Interest RatesInterest Rates

%if interest rates are high you if interest rates are high you would be better investing in would be better investing in GICs, term deposits and bonds, GICs, term deposits and bonds, as those pay interestas those pay interest

Interest RatesInterest Rates

%if interest rates are low you if interest rates are low you would be better investing in would be better investing in real estate because real estate because mortgages are cheaper mortgages are cheaper

Interest RatesInterest Rates

%stocks and mutual funds are stocks and mutual funds are also more attractive since also more attractive since they increase your wealth in they increase your wealth in capital gains and not interestcapital gains and not interest