2024 Investment Tips and Financial Planning Strategies: A Guide for Personal Finances

2024-01-03 18:36:35

Inflation, interest rates, economic slowdown… These topics made headlines in 2023. What to expect regarding your personal finances and investments in 2024? Here are some investment tips, according to a financial planner.

If you want to make investments, you must first of all create an investor profile, in order to discover “your rate of risk that you wish to take with your investments”, comments the financial planner of Jutras Gestion de Patrimoine, Jean-Sébastien Jutras , in interview at Quebec Morning.

Although traditional investments in the stock market are well known, Mr. Jutras says that one investment strategy could simply be “to pay your mortgage faster.” “If I have an interest rate of 4% or 5% and I put money aside more quickly, I have a guaranteed rate of 4% to 6% interest on my mortgage,” he adds.

Be patient with your investments!

Despite the current economic situation, the financial planner mentions that it is important to continue making investments and to start as soon as possible.

To justify his statements, he presents an example which demonstrates the importance of being patient and not reacting too quickly regarding your investments.

In the event that you placed $100,000 aside ten years ago, and faced with uncertainties, you decided to take that money out, “you have just lost the three most important months, your 100,000 $ is now at $158,000,” notes Mr. Jutras.

If you miss nine important months of investing, your $100,000 would be $178,000. On the other hand, if you did not touch this money, you would now be at $210,000. “We see the difference between those who try to “time” the market and those who remain invested,” he says.

Education savings plans

Education savings plans have gained popularity in recent years, making them an attractive option financially, according to the financial planner.

“If I put $1,000 aside for my children’s education savings plan, I will have at least 30% government subsidies,” he explains.

Watch the full interview above

#Personal #finances #tips #investments

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