1. Plan on living a long time.
CPP deferral is one strategy that can be used to help plan for a longer retirement, but there is no substitute for starting the planning process early and thinking long-term.
2. Harness the power of Dividends and Compounding.
3. Stick to a plan, stay invested, try to avoid emotional bias.
4. Volatility is normal, don’t let it derail you.
The chart below from Invesco traces the history of bull and bear markets and the performance of the S&P 500 during those periods. In general, the downturns tend to be shorter and less impactful than the long-term upward trend.
5. Diversification works.
Diversification is an investment technique that reduces risk by allocating investments across various financial instruments, industries and other categories. Not all types of investment perform well at the same time. Different types of investments are affected differently by world events and changes in economic factors such as interest rates, exchange rates, and inflation. Diversification allows you to spread the risk in your portfolio across a range of investments, which will ultimately improve the risk-reward profile of your portfolio putting you well on your way to achieving your long-term financial goals.
Want to implement your own long-term Financial Strategy?
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