Let’s end this module by looking at investment returns. Your investment return is how much your investments grow over time. For example, a 5% return on $10,000 means you’ve gained $500. At Common Wealth, we help you focus on what matters: If you focus on just one number, make it your retirement readiness score—not your […]
3.6 Keeping the Long View Read More »
Markets go up and down. In the long run, they’ve delivered solid growth—but in the short term, they can be unpredictable. When markets are volatile—like we saw during the pandemic—what should you do? The answer is: do nothing. Stay invested. Stick to your plan. Ignore the short-term noise. If your goals haven’t changed, your investment
3.5 Staying the Course Read More »
Building the habit of consistent saving—and making sure those savings are invested automatically—is powerful. Contributing monthly or every payday not only helps you save more, but also improves investment performance by smoothing out market ups and downs. This is called dollar-cost averaging. Even small amounts—$50 or $100 a month—can grow significantly over time. Common Wealth
3.4 Building a Smart Investment Strategy Read More »
Time is your friend. It’s one of the most powerful tools in your investing toolkit. If you stay invested for years—or better yet, decades—you’ll do better than most Canadians. Why is this? Because of the power of compounding. When your investments earn returns, those returns start earning returns too. Over time, that growth compounds—like a
3.3 The Power of Time Read More »
Saving is setting money aside. Investing is putting that money to work. If you save without investing, your money won’t grow—or will grow very slowly. Without the potential growth from investing, it’s difficult to reach long-term goals like retirement. Short-term goals, like saving for a vacation, might make sense to keep in cash. But retirement
3.2 Don’t Just Save, Invest Read More »
When it comes to building wealth for the future, saving is just the beginning—investing is what helps your money grow over time. In this video, we cover:
3.1 Investing Basics Read More »
Let’s take a minute to recap the key takeaways. Both RRSPs and TFSAs are powerful ways to save for retirement. If you have middle income or above, RRSPs may be your starting point. If you have lower income, a TFSA might be the better first step. Understanding how these accounts work can help you make
2.5 Savings Accounts Recap Read More »
One of the most common questions in Canadian finance is: “Should I save in a RRSP or a TFSA?” We can’t make the choice for you, but here are a few general guidelines. Whichever account you choose, be careful not to overcontribute. Here’s how to avoid that: With Common Wealth, you can always see your
2.4 RRSPs vs. TFSAs Read More »
Like RRSPs, investments in a TFSA grow tax-free. That’s a huge benefit. They’re also a powerful tool for long-term investing—like retirement. TFSAs also have contribution limits, but unlike RRSPs, these limits aren’t tied to your income. They’re flat annual amounts determined by the government. Every Canadian over 18 receives this room, regardless of how much
2.3 How TFSAs Work Read More »
Let’s dive into RRSPs—a financial tool that’s been at the heart of Canadian retirement planning since 1957. First, when you contribute to an RRSP, you get a tax deduction. That means you don’t pay income tax on the amount you contribute. When you withdraw money from an RRSP, you’ll pay income tax on it. This
2.2 How RRSPs Work Read More »
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