Whether saving short-term to reward yourself with a small home renovation, new car, or staycation, or long-term for retirement, travel, or a new home, your future happiness depends on the decisions you make today.
The dictionary defines self-care as the practice of taking an active role in one’s own well-being and happiness, in particular, during periods of stress. But really… anything that makes you happy can be considered self-care.
Did you know that your future self-care activities are dependent on your finances? Because the truth is, you can’t do the things you love without properly saving and investing your money.
Here are some financial products and services you should consider that will positively impact your future self-care.
A Term Deposit
If you’re risk averse, a term deposit is a safe and guaranteed way of investing your money for a set length of time.
Many term deposit investors use a laddered approach, which means they divide their investment into several term lengths with different maturity dates. By using this strategy, you will enjoy the benefits of flexibility and reduce the impact of interest rate fluctuations.
Terms are available from one to five years and all deposits are guaranteed 100% by the Deposit Guarantee Corporation of Manitoba.
A Tax-Free Savings Account
A Tax-Free Savings Account allows individuals to earn investment income tax-free.
Contributions to TFSAs are not tax-deductible and any money deposited—as well as any income earned in the account—is tax-free for life, even when it is withdrawn.
A TFSA is simply a great way to save for things that will make you happy in the near future.
A Registered Retirement Savings Plan
An RRSP is an investment account that allows you to save for your retirement on a tax-deferred basis. Contributions are tax-deductible, and interest earned is tax-free until you make a withdrawal from the account.
Whether you’re saving for retirement or looking to contribute to your down payment as a first-time home-buyer (yup, you read that right!), an RRSP can certainly aid in your financial well-being.
A Personalized Investment Strategy
There’s much more to a financial portfolio than term deposits, RRSPs, and TFSAs, although they are a great start.
We offer access to stocks, bonds, ETFs, mutual funds, and insurance products. We help our members with planning for big life events, advising in many areas: insurance, retirement planning, savings for children, tax minimization strategies, estate planning, budget building / analysis, the list goes on!
However, it is important to look at what your goals are for your investments, how much money you have to invest, what your timeframe is, your risk profile and of course, your personality. There is no one-size-fits-all investing style.
Looking to get into investments? There are many options. Whether you want to manage your own portfolio with DIY investing through some of our trusted partners, or work with an advisor, your future is in your hands.
Access Credit Union has the tools you need to start investing in you. Talk to your local branch or call our Member Solutions Centre to find out how you can start investing in you today.