THE 10 GOLDEN RULES OF SUCCESSFUL INVESTING

Do what successful investors do and apply the following rules:

1. Don't be dazzled by returns; choose investments that meet your needs

   Past performance is no guarantee of future returns. That's why it's important to base your choice on the characteristics of the investment, not its past performance.

2. Don't try to second-guess the market

   Even investment experts do not always succeed in predicting market movements and the best time to buy.

3. Invest regularly

   Save at your own pace, by investing a specific amount at specific intervals. When you invest often throughout the year, you can make the most of market highs and avoid being hit too hard by the lows.

4. Diversify your investments

   To minimize your risks and boost your potential returns, invest according to your investor profile in different product types, geographical regions, asset classes and industry sectors.

5. If markets are volatile, be patient

   When you're investing for the long term, stick with your investment strategy. Remember that, historically, a market slowdown is often followed by a recovery.

6. Go for investments that offer tax benefits

   Outside your RRSP, invest in products that offer tax benefits, like investments that generate capital gains and dividends (equities, equity funds and dividend funds) rather than in products that generate interest income (guaranteed investment certificates, bonds, strip coupons and bond funds).

7. Don't deprive yourself of the growth potential of stock markets

   A portfolio that contains stocks as well as bonds is less risky than a portfolio with only bonds. To produce winning results, include the proportion of equities in your portfolio that corresponds to your risk tolerance.

8. Maximize the foreign content in your portfolio

   Expand your investment horizons and invest outside Canada. International markets offer excellent potential returns.

9. Contribute to your RRSP every year

   Instead of not contributing to your RRSP one year and thus depriving yourself of thousands of dollars of retirement income, think about borrowing the money you need. You can then use the tax refund you receive to pay off part or all of the loan.

10. See your financial advisor for a portfolio check-up once a year 

    Your financial needs and situation are constantly changing, so it is essential to make sure your portfolio always meets your needs. Discuss your portfolio with your financial advisor at least once a year or whenever an important event has occurred in your life (buying a home, having a child, receiving an inheritance, losing a job, etc.).