5 financial mistakes to avoid so your investments can grow

Avoid financial mistakes to achieve your long-term goals.

Adèle Manseau | Desjardins Group

When it comes to putting things off, we seem to think no excuse is a bad excuse! But by making a few simple changes, growing your RRSP or TFSA can be easier than ever.

Angela Iermieri, a financial planner at Desjardins Group, shares 5 financial mistakes you can easily avoid.

1. Making last-minute contributions

Why wait when you can avoid a last-minute rush by setting up automatic contributions? It’s easy to set up automatic transfers throughout the year so you won’t be scrambling when the contribution deadline comes.

You can change the frequency and the amount of your contributions whenever you want, and rest easy while your money works for you.

2. Waiting to save up big sums to invest

Even a $25 a week investment can make more of a difference than you might think. Contributing early and often only increases your savings for retirement, your first home or anything else that’s important to you.

3. Not using an advisor

Did you know that Canadians who consult with a personal financial advisor put aside twice as much money as people who don’t?

Meeting with an advisor really pays off. They have the tools and expertise to help you select the best financial vehicle and get you where you want to go.

4. Using a TFSA like a savings account

That’s just what you’re doing if you’re regularly dipping into your TFSA—your money won’t have time to grow. Forget about the potentially misleading name, a tax-free savings account should be used as an investment vehicle.

The longer you let your investments grow tax-free, the larger your returns will be.

5. Cashing in when the market fluctuates

No one likes to the see the markets go up and down. But pulling out when they’re down can have a big impact on your long-term investment returns.

Stick with the strategy you decided on with your investment advisor and you’re more likely to achieve your long-term goals.

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