Pump up your savings

Serious looking older couple look at pieces of paper at kitchen table.
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If you’re nearing retirement and can’t afford to take any risks with your assets or maybe just the idea of that makes you uncomfortable, you’ll want to prioritize saving.

Your best bet is to save your money, either through buying a guaranteed investment certificate (GIC) or putting it in a high-interest savings account.

Let’s start with GICs. Terms can last for as little as 30 days or as long as 10 years, but the longer your term, the more you’ll earn in interest.

GICs are very low risk, but the catch here is you need to leave your money with the bank for the full term otherwise you’ll miss out on accruing interest or risk an early withdrawal penalty.

If you might need your money at some point, then you’ll want to consider a high-interest savings account instead.

These accounts can earn you 10 times more than a traditional savings account, which is a great compromise for those who want to keep their money safe but earn a little extra as well.

Finally, while you’re thinking about savings, don’t forget to put aside as much as you’re allowed into a retirement account to ensure you have funds to fall back on in your golden years.

Invest wisely and strategically

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No matter how long you plan on renting — a couple of years or the rest of your life — it’s always worthwhile to put your money in sound investments that have a solid history of strong returns.

If you want to strike some balance here, why not start small? Download an app that allows you to invest your extra cash. You can always grow your portfolio as you get more comfortable with the app.

If your risk tolerance is a little higher, you could even consider investing in cryptocurrency.

Other ways to put your windfall to good use

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Anytime you come into a tidy sum, you’ll want to make a few practical money moves and at least one fun or frivolous choice.

  • Get a handle on debt. If you’re carrying any balance on your credit cards, you’ll want to prioritize paying down debt and improving your credit score, which will help when you want to lock in an affordable loan later on.

  • Protect your family’s future with life insurance. Without a family home, you’ll probably be even more focused on securing your family’s financial future. And thanks to a new wave of digital-first brokers like PolicyAdvisor, it’s easier than ever before to secure affordable life insurance.

  • Treat yourself. Listen, it’s been a hard year for everyone but we know on top of everything that selling your house is a huge hassle. Do something nice for yourself, even if it’s just splurging on a big-ticket item you’ve been yearning for — and download a free app that lets you earn cash back every time you shop online.

About the Author

Sigrid Forberg

Sigrid Forberg

Staff Writer

Sigrid is a staff writer with MoneyWise.ca.

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