1) Start early and invest regularly
Regular investing puts the power of compound growth on your side. And the earlier you start, the more you may have in the future.
2) Reduce taxes today
RRSPs are designed to help build your financial future and the contributions have the added benefit of being tax deductible. By making RRSP contributions on every pay day, you can take advantage of potential and immediate tax savings – by asking your employer to deduct less tax off your paycheque.
I recommend TaxCut by H&R Block
to prepare your 2007 tax return for USA residents.
3) Think global
As Canada makes up only about 4% of global stock market capitalization1, global investments can play an important role in reducing risk and increasing return potential. A portfolio made up of several types of investments from different countries may be stronger over the long term – and less exposed to risk – than one that’s invested in a single country, asset class or type of investment. That’s why a sensible approach for most investors is a globally diversified portfolio that includes Canadian and international stocks, combined with fixed income investments.
4) Consider an asset mix strategy
It is important to have the right asset mix as studies show that asset allocation is the key driver of a portfolio’s performance. 2 Typically, as you get closer to retirement your mix should become more conservative to emphasize asset preservation over growth. Conversely, younger investors with more time before retirement can afford to be more aggressive in their approach.

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