Your time horizonTime horizon The length of time that you plan to hold an investment before you sell it. This may be a brief period of time or span as long as decades, depending on your financial goals.+ read full definition is a key factor in choosing investments. For example, if you’re investing for the short termTerm The period of time that a contract covers. Also, the period of time that an investment pays a set rate of interest.+ read full definition, you may want to choose investments that guarantee your return, so your money is there when you need it. If you’re investing for the long term, you may choose to take more risk with your investments in order to grow your money faster. But with higher-risk investments, there’s a greater chance you could lose some or all of your money. The key is knowing what kind of investor you are and creating an investment plan that is appropriate for you.
Investment options for long-term savings
Investments like mutual funds, bonds and stocks may have a higher return over the long term. But like all investments, they come with risks and most have fees that you should consider before you investInvest To use money for the purpose of making more money by making an investment. Often involves risk.+ read full definition. Learn more about choosing investments that are right for you.
Consider professional advice to help you plan for your long-term goals and make investmentInvestment An item of value you buy to get income or to grow in value.+ read full definition decisions that are right for you.
Tax-sheltered plans can help you save more
Plans like RRSPs, TFSAs and RESPs offer certain taxTax A fee the government charges on income, property, and sales. The money goes to finance government programs and other costs.+ read full definition advantages that can help your money grow faster.
Use this calculator to see how even small amounts of money saved add up over time.