Investment planning

When the time comes to plan and select the investments that are right for you, it is important to feel confident that you’re making informed decisions.

Here are a few key questions to consider when investing:

  • How long can I invest my money for?
  • Do I have specific plans for the money?
  • How important is it to have easy access if I need it?
  • Am I prepared to sacrifice a guaranteed return in exchange for potentially higher returns with investments that, while carefully-managed, see higher day-to-day fluctuations?

Here’s a top-level look at some basic types of investments. For a deeper dive, don’t hesitate to contact us.

Cash and cash equivalents

Cash is simply money you have immediate access to in a chequing account, a high interest savings account like Jumpstart® or a cashable term deposit. Because we all have a need for emergency cash resources. So, the question is how much money should be held in cash? An investment plan will help you come to the answer.

See our current deposit rates.

Fixed income investments

Fixed income investments are generally low-risk investments that will provide you with income at set intervals and, depending on the investment, there may be a guaranteed return of principal, too. These investments are important for almost every investor.

Here’s the low-down on the most popular fixed income investments:

  • Vancity term deposits: Income payments are fixed for the term you choose. Each “separate deposit” as defined by Regulation is 100% guaranteed by the Credit Union Deposit Insurance Corporation.
  • See our current deposit rates.
  • Government bonds: Government bonds can be issued by municipal, provincial, or federal government. Interest payments and maturity value are guaranteed by the government that issued them. Bonds may also be issued by companies.
  • Mutual funds: There are many income-providing mutual funds, some with very attractive tax features. These offer professional management for your fixed income needs and provide the potential for higher returns – while your money will be carefully managed, returns will vary and there are no guarantees for either income or principal.
  • Talk with a Wealth Planner at 604.709.5955.

Equities – stocks and income trusts

Investing in companies by buying shares means becoming an equity investor and a shareholder. Sounds exciting, but along with ownership comes risk because there are no guarantees. The most popular form of equity investing is through mutual funds. With a mutual fund your money is diversified across many different stocks. Yes, when it comes to equities, there are risks. But there is also the potential for greater returns than cash or fixed income investments. Keep in mind that equity investing is a long-term journey with ups and downs caused by markets and corporate earnings.

Why do people put their money in equities?

  • Historically, a properly diversified portfolio of equities has outperformed other financial investments such as term deposits, bonds, and preferred shares over the long term.
  • Many equities pay their shareholders more money over time in the form of increasing cash dividends.
  • Income from equities has a lower tax rate than income from term deposits, savings accounts, and bonds.
  • Talk with an investment advisor.

You’re not alone.

If the thought of choosing your investments feels overwhelming, it’s time to meet with one of our investment professionals.

Find an investment professional.




Credential Direct® is a division of Credential Securities Inc. and operates as a separate business unit. Credential Securities is a member of the Canadian Investor Protection Fund.

*Surviscor Online Discount Brokerage Review

Credential disclosure and mutual funds disclaimer.

Jumpstart® is a registered trade-mark of Vancouver City Savings Credit Union

 

Next steps

For any inquiries that are not Mutual Funds related, please contact
604.877.7000

Prefer to chat with a wealth management professional over the phone? Just give us a call at
604.829.5560