A Beginner’s Guide to Investing for Professionals Under 30

From Prospera Chartered Accountants |

CPA Firm Calgary Alberta

The investing and tax world can sometimes feel complicated, as there are many things to comprehend. One also tends to get bombarded with adverts from the industry, which presents biased information. This scenario makes independent advice invaluable.

So, to help young professionals understand how to start controlling their financial life, Prospera Chartered Accountants has put together a beginner’s guide to investing for professionals under 30. By following this guide, you, as an investor, can achieve peace of mind that you are making the right investment decisions.

Getting Started

Prepare a statement of net worth: Start with drawing up a list of all your assets and all your liabilities to understand your current financial situation. It will let you know how much surplus cash you have to invest.

Determine short term goals: Understand what your main goal is for the next twelve months, e.g., pay off debt, save to buy a house, or to start growing a corpus for retirement. 

Next Steps

Clear debts: Before you start to invest, always pay off credit card debt first, or consolidate debt with a cheaper line of credit.

Do not borrow to invest: Interest rates are low right now, but too many people have lost out by trying to beat the market. So, do not feel guilty if you cannot invest right away, as you could end with even more debt in the long run.

Diversify your investments: You may see one sector of the economy doing well and consider putting all your eggs in that basket, e.g., Marijuana stocks or high-tech stocks. However, it’s essential to think long term and create a diversified portfolio that will stand the test of rocky markets.

Advice From The Pros

Take advantage of tax relief: If you are saving for a down payment, consider opting for a Registered Retirement Savings Plan (RRSP). When you buy your first house, you can borrow interest-free from RRSP, and get tax back while you are saving for the home.

Stay positive: Many investors start out spending most of their paycheck on everyday living, which is okay. As your career progresses, you will find an increasing ability to save as a result of enhanced pay and bonuses.

Seek sound advice: Remember, investing is a marathon with many steps along the way, so reach out to professionals and do not listen to your buddies in the bar or at the gym.

At Prospera Chartered Accountants, our goal is to exceed your expectations. As the go-to financial expert in Calgary, Alberta, you can feel confident about building a nest egg with us. We are trusted to render timely and reliable services that get tailored to meet our clients’ needs.

We specialize in accounting and assurance, business consulting, taxation advice, retirement, and estate planning, and we serve clients across Calgary, Okotoks, and High River, Alberta. Visit our website to learn more or contact Prospera Chartered Accountants today.