We’re comparing finances to fashion to help you stay on trend when it comes to investing. 

Fashion seems to cycle faster than a washing machine these days. Who would’ve thought scrunchies, mom jeans and bucket hats would be back with a vengeance?! (*picks up puka shell necklace and puts it back in jewelry box just in case). Though trends are constantly in flux, there are some wardrobe (and investment) staples that will leave you feeling like a million bucks. 

Plain White T-Shirt: A Financial Plan 

This is the base layer you can build upon no matter where you’re headed. A financial plan will help you take better control of your finances, identify investment opportunities, prepare for unexpected events and set realistic goals. Whether it’s buying a home, saving for your child’s education or growing your wealth, a financial plan will act as a roadmap to help you get there. CIBC Journey Advisors can custom tailor your investments and make alterations to ensure you’re feeling confident when you walk out the door. 

Fitted Blazer: The RRSP

This is a classic piece you’ll be able to wear well into the future. It’s something to keep in your closet for the long haul. A Registered Retirement Savings Plan (RRSP) is a government-sponsored retirement plan with significant tax benefits. It can include a mix of investments including mutual funds, GICs, stocks and cash. Every dollar you contribute to an RRSP can reduce your taxable income for that year, which means you pay less tax. If you’re looking to purchase property, you can also withdraw up to $35,000 per calendar year from your RRSP as part of the First Time Home Buyers’ Plan. 

Vintage Leather Jacket: The RESP

Grandpa’s favourite leather jacket from the 1940s is something meaningful you can pass on to your kids. So is a Registered Education Savings Plan (RESP). This investment will give them the opportunity to pursue a variety of educational paths including university, college, trade school and apprenticeship. Funds can also be used towards related costs like tuition, books and living expenses. There are many government grants and incentives to help your savings grow faster. For example, the basic Canada Education Savings Grants (CESG) matches 20% of RESP contributions, up to $500 a year. You can book a meeting to open an RESP as soon as you have your baby’s SIN number and birth certificate.

Jewelry: Stocks, bonds, mutual funds, GICs and ETFs

This is where you can pick and choose pieces to enhance your outfit based on your personality. A simple gold chain and a balanced mutual fund portfolio might work well for one person. Light-up rainbow sneakers, a volatile “all or nothing” stock might be what someone else is looking for. There’s no one-size-fits-all when it comes to these investments. It depends on risk tolerance and timelines. With so many options, it can be hard to choose. Financial advisors can look at the big picture and help you build a portfolio that suits you and your goals. 

Book a meeting with a CIBC Journey Advisor today to help you choose the investment pieces that work best for your family and ensure you’re financially dressed to the nines.