Stay with us here, but we’re comparing some of the most important terms in finance to your everyday stroll to the coffee shop to help you make sense of it all.
One of the great things about coffee shops? There’s something for everyone (and that’s coming from someone who doesn’t even like coffee). Tastes change over time but there’s a big menu to choose from.
Would you believe that the same could be said about investing? Sure, it’s a little more intimidating than ordering your daily coffee but you might be surprised by just how approachable it all is when you think about it in a different way.
Financial Advisor – Your Barista
It can be hard to know who to trust with your money. Many young people seek to educate themselves on their own first but you should know that there are experts out there who really are happy to help you. And just like a barista can recommend the right drink to you, a CIBC Journey Advisor can recommend the right ways for you to save and even invest your money.
Financial Plan – Black Coffee
This is the standard, the go-to, the basis from which all other drinks at the coffee shop stem. Similarly, with your money, a financial plan is the base that will enable you to take better control of your finances, set attainable goals, and identify new opportunities for your money. How you decide to customize it is completely up to you.
ETF – Espresso Shot
For those looking for a quick punch of excitement, an ETF is that espresso shot for your investing plans. Exchange-Traded Funds are mutual funds that you can buy or sell on the stock exchange. They offer the rush of buying into something big but in a small package that’s more manageable for you. Importantly, they’re typically cheaper and easier to grasp in comparison to regular mutual funds.
GIC – Beans To Take Home
A Guaranteed Investment Certificate is a type of deposit investment that guarantees a predetermined rate of interest in addition to a return of the initial investment. You can’t touch it right away and it’s saved for later but when you do go to reap the rewards, you’re guaranteed to get something you like. Kinda like picking up a bag of beans to bring home and make for yourself later.
RRSP – Hot Chocolate
The key here is comfort. A Registered Retirement Savings Plan is perfect for those looking for a reliable, comforting financial cushion. All contributions are tax-deductible and growth is similarly tax-sheltered. The idea is to save for retirement and lower your taxes by re-allocating income from high-earning years in your prime to lower-earning years later in life. And there’s never a wrong time to start one, just like how there’s never a wrong time for hot chocolate.
TFSA – Chai Tea Latte
A Tax-Free Savings Account, like the chai tea latte, is the new favourite. Once introduced as a bold new flavour, it’s now become a go-to for many. This registered savings account is a vehicle where you don’t have to pay taxes on the investment income you earn. This is where you should keep your most taxable investments as opposed to your regular savings.
And that’s just the tip of the iceberg. Have more questions? Team up with a CIBC Journey Advisor today!
Looking to earn some extra money to get started on any of these? Answer a few quick questions for a chance to win $1,000 from CIBC to help with your financial goals.
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