In your early career years, consider balancing your assets with this mix:
If you are a younger investor, you may:
Put more of your savings in stocks or equity mutual funds. In the past, these choices have often done better than interest-based investments over time.
Avoid putting all your money into high-risk investments.
A good mix of assets usually works best. Also, if you’re saving for a short-term goal, such as a car or house, you will want to moderate your risk.
Reviewing your asset mix
Review your mix from time to time and consider rebalancing your portfolio in these situations:
When you’re making a major new investment
When one asset has had an unexpectedly good or bad return compared to others
Each year, before tax season
Whenever you’re speaking with a financial adviser.
Remember: Asset mix is critical to investment success
It’s also a very personal matter. You may be willing to take more risk in your early and peak earning years. As you head toward retirement, many people choose a more conservative mix. If you don’t feel comfortable choosing your own asset mix, you may want to get some expert advice.
Watch this video of Lesley Scorgie, author of Rich by 30 a young adults guide to financial success, with Rob Carrick from the Globe and Mail discussing financial tips for 20 something’s.