As quoted in Golden Girl Finance’s article from Jennifer Black
The most recent Manulife Investor Sentiment Index revealed a truth about Canadians and their money-saving tendencies – when compared with investors in the U.S., Canadians are far more likely to favour cash investments over the stock market.
It’s all about the Benjamins (er, Lauriers?)
Most people would probably look at the differences between our two countries and cultures and chalk that fact up to our different tolerance for risk. That may be true on a general basis.
Regardless of the reason behind the preference, the thing that stands out to me is how much people need to understand that it is important to have an investment plan and then follow it. Almost every investment plan has a component of cash and cash-equivalents, but if you are in a situation where you need to be making a 5-6% return, then just putting money in cash is not going to get you what you need.
Don’t cash out on opportunity
Making sure you’re not too heavily weighted into cash products if you need to hit higher returns is a great conversation to have with your advisor this year. Contact us at Dedicated Financial Solutions to learn more.
Note: the information contained here is general in nature and does not take into account your personal situation. Before acting on any of this information, you should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial advisor.