Sonya Khanna

Business Editor

Keeping personal finances in-line is easier said than done. Just as keeping track of your schoolwork through daily planners helps maintain your sanity, aligning finances through various life stages may relieve stress related eye twitching.

The Bank of Montreal Financial Group has compiled a list of strategies to help Canadians effectively gauge the appropriateness of their investing strategies.

“For Canadians to get the most from their money, their investments must be properly aligned with their current life stage,” said Serge Pepin, Head of Investments for BMO Investments Inc. “In today’s volatile market, it’s especially important not to lose sight of individual needs and to recognize the importance of a comprehensive, well-considered financial plan. More than 90 per cent of Canadians who have a plan believe real viagra without prescription it has played an important role in helping them achieve their financial goals.”

Keeping in mind the lingering deadline of Feb. 29 to contribute to a Registered Retirement Savings Plan (RRSP), the list prepared by BMO seeks to help individuals align investment strategies with their age and anticipated life events.



According to Bank of Montreal, diversification is the name of the game for twentysomethings. Debt-ridden students are attempting to establish themselves as adults; post graduation living prompts a greater desire to build a long-term financial plan.

Temptation taunts the wide-eyed recent graduate, eager to embark on financially irksome adventures but the Bank of Montreal suggests channelling your inner money conscious self and pay down existing debt while trying to conserve funds. With the average retirement age inching higher, young individuals should attempt to take a more aggressive approach to their asset mix; acquiring more equities over fixed income or cash is crucial to effectively secure personal finances.

“Investing according to one’s life stage can be complicated. We introduced BMO LifeStage Class Funds to help investors with such decisions. BMO LifeStage Class Funds offer a suite of mutual fund portfolios that annually shift asset mixes to enable investors to become more conservative as they approach their target end dates,” concluded Mr. Pepin.


Thirties to Forties:

Individuals between the ages 30 to 40 spawn numerous changes relating to both personal and financial matters; individuals may contemplate growing their families and making greater long-term expenditures. Individuals closer to the end of this stage must manage debt carefully while planning for the education of their children.

Registered Retirement Savings Plans (RESP) along with the federal government’s Canada Education Savings Grant (CESG) offer Canadians security and a growth-assured education investment; benefits of an RESP include tax-sheltered investment.

Juggling priorities can leave you disgruntled and helpless, but maintaining a portfolio that is relatively balanced across all assets will enable individuals to nip financial woes in the bud.


Fifties to Sixties:

Within this age bracket individuals should aim to shine the spotlight on shifting investments from long-term to mid-term to support existing retirement savings. According to the Bank of Montreal, during this stage it is vital to reinforce effective risk management due to the cumbersome nature of tackling fluctuating savings. BMO suggests adopting a more conservative asset mix with adequate amount of fixed income.

Individuals on the cusp of retiring will certainly want to eliminate existing debt; paying off outstanding debt will east the minds of those taking the leap into a highly anticipated retirement.


Sixties and Beyond:

Breathe a sigh of relief. Phew, you’ve finally made it to your retirement, time to pack your bags and head south to indulge in the cliché wonders of retirement in sunny Florida. During this stage decision making is in full gear, with emphasis being placed on planning for early retirement, contemplating taking on a second career or eagerly preparing to travel. It is important to adjust your financial plan to expand retirement possibilities. Diversifying income-generating investments along with a conservative asset mix will help keep finances in order and opens a field of possibilities for retirement.




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