Investment resolutions to get F.I.T.

By Sarah Powley

(NC)—Most likely you have made a New Year's resolution to get in shape or eat healthier; but what about your financial health? To help ensure your financial health in 2008, follow these investment resolutions to get F.I.T.

Financial planning for emergencies

If an emergency arose tomorrow, would you be able to quickly liquidate your investments? Would there be tax consequences? Preparing for the worst may not be fun but advance planning can make a bad situation better.

"The best course of action is to plan ahead," said Stephen Reichenfeld, vice president, Fiduciary Trust Company of Canada. "When an emergency happens, you should be able to easily access some cash to carry you through."

Ignore the markets

Markets go up and down affecting your investments on a daily or monthly basis. You may be tempted to check your portfolio frequently to see how your investments are doing.

"Making a quick decision to jump in or out of an investment can be dangerous because you are probably reacting with emotion rather than sticking to your strategy," said Mr. Reichenfeld. "It is best to review your portfolio annually with your advisor to make sure it still meets your long-term investment goals."

More information on financial planning is available on web sites like www.fiduciarytrust.ca

Tax-efficiency for your investments

Limiting tax on your investments is very important to growing your wealth. There are many options to help you save on tax, including RRSPs, Corporate Class fund structures and specialized investment products that are tax-efficient.

"Being able to grow your investments in a tax-efficient way will ensure that you can re-invest your gains with minimal tax consequences until you withdraw the money," said Mr. Reichenfeld.

Ensure your financial health in 2008 by having — and sticking to — a financial plan with the help of your investment advisor.

-News Canada