TORONTO, ONTARIO -- (Marketwire) -- 02/05/12 -- As the February 29th deadline approaches to make a contribution to a Registered Retirement Savings Plan (RRSP) and as part of its ongoing commitment to improving financial literacy, BMO Financial Group will be providing daily retirement tips during the month of February from BMO Retirement Institute Head Tina Di Vito's new book 52 Ways To Wreck Your Retirement...And How To Rescue It.
Tip Number Nine:
Know how much risk you can tolerate
Understanding how much risk you can tolerate can make you a better investor because you'll make investing decisions that are suited appropriately to your personal situation.
To determine your risk tolerance:
-- Complete an investment policy statement that identifies your investment
objectives, time horizon and the contributions or withdrawals you will
make over time.
-- Younger investors with a longer time horizon could be more aggressive
and have a higher concentration in equity investments.
-- For those closer to, or in, retirement, it's important to include
conservative, shorter term investments that reduce volatility in their
portfolio as they head into retirement.
Tip Number Ten:
Don't play it too safe
Being too conservative in your investment approach actually adds additional risk and could cause you to run short of money over time. By being too cautious, you may not be able to keep up with inflation; over time this will greatly reduce your buying power. When you invest, you need to earn a rate of return that is higher than inflation plus income taxes if you want your money to grow.
For more information on retirement: www.bmo.com/retirement.
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Contacts:
For all news media enquiries please contact:
Rachael Mckay, Toronto
416-867-3996
rachael.mckay@bmo.com
Sarah Bensadoun, Montreal
514-877-8224
sarah.bensadoun@bmo.com
Laurie Grant, Vancouver
604-665-7596
laurie.grant@bmo.com