A wide variety of strategies are available for growing wealth toward your financial goals, yet nothing is more important than understanding the concept of compounding: this is the effect whereby seemingly small or regular investments early in your life can growth faster and faster as previous returns are reinvested.
Common account types include:
- Registered Retirement Savings Plan (RRSP)
- Tax Free Savings Account (TFSA)
- Non-Registered Investment Account
- Registered Education Savings Plan (RESP)
- Employer-sponsored Group Retirement or Defined Pension Plan
- Whole and Universal Life Insurance
- Segregated Funds
- High Interest Savings Accounts
- Loans or Mortgages
Invest your money.
Three short, simple words. Or are they?
The best strategy is dependent on personal circumstances and goals, and often requires a planning analysis to determine which approach is likely to lead to higher net worth.