Investing In Your Tomorrow, Today.
Starting Out
As a young adult just starting a career, there are many new and exciting opportunities available to you. These may include purchasing or renting a new house, condo, or apartment, finishing post secondary education, or starting a new career. Exciting new financial obligations are opening to you such as credit cards, credit lines, mortgages, car loans, student debt and retirement planning.
As a young person it is easy to delay planning for the future and talking about retirement, when you have just started working and finally having some financial freedom. However, this is the perfect time to consider investing in your future. With a multitude of investing options that help you reach your goals such as First Home Savings Accounts (FHSA) and Registered Retirement Savings Plans (RRSP), The effects of compounding cannot be underestimated. If you decide early to invest, you can avail of the largest time of investing over your working career. If you couple your RRSP investment with a First Home Savings Account, you can save for a house tax exempt while earning interest and having that interest compound over time.
Additionally, as a young professional it would be an ideal time to consider life insurance. As a young, healthy individual with no medical history, your life insurance premium could be very cost effective. Once the life insurance is applied for and in force, it cannot be changed or modified by the insurance company. This means that as life changes and if your health changes as, you age, your cost for this insurance will not increase and cannot be adjusted by the insurance company. Life insurance is a much more cost-effective type of insurance to cover your new home purchase than mortgage insurance offered by the lender. Watch this short video that explains some of the pitfalls of mortgage insurance.
After watching this video, ask yourself which product protects me and not the lender and which product is more advantageous to my family?
As a young professional, your biggest asset will be your ability to work and make money. If for some reason you get injured or sick and cannot work, you will want to secure your ability to meet your financial obligations. The best way to do this is through disability insurance. Disability insurance will cover a portion of your salary and pay you monthly if you become disabled. This insurance plays a major role in insuring you have enough financial resources to cover your expenses. This insurance can enable you to continue paying your mortgage, car payment, health and dental insurance premiums, retirement funding, utilities bill, gas, and extra curricular activities.
