BMO Financial Group
TSX : BMO
NYSE : BMO

BMO Financial Group
BMO Bank of Montreal

BMO Bank of Montreal

February 07, 2012 08:00 ET

BMO Retirement Tips of the Day: Don't Watch Your Investments Too Closely and Factor in Time, Contributions and Rate of Return

TORONTO, ONTARIO--(Marketwire - Feb. 7, 2012) - As the February 29th deadline approaches to make a contribution to a Registered Retirement Savings Plan (RRSP) and as part of its ongoing commitment to improving financial literacy, BMO Financial Group will be providing daily retirement tips during the month of February from BMO Retirement Institute Head Tina Di Vito's new book 52 Ways To Wreck Your Retirement…And How To Rescue It.

Tip Number Thirteen:

Don't watch your investments too closely

The more attention you pay to how your investments are performing, the more likely you are to try to time the market; this may cause you to make impulsive decisions. While it's important to review your portfolio on a regular basis, watching your investments too closely can lead to emotional and, sometimes, foolish decisions. Common mistakes include:

  • Copying what others are doing and simply joining the crowd for fear of being left out.
  • Overreacting to a news story without doing proper research.
  • Losing sight of your long term goals and investment objectives and making investment decisions in isolation.

Tip Number Fourteen:

Know the value of time, contributions and rate of return in reaching your goal

Three factors play a major role in reaching your savings goal: time, contributions and rate of return. With more time, larger contributions and a higher rate of return, you will accumulate more money. If you change any of these factors, the others will be impacted.

When considering your savings options, consider which of these factors you can best control and work with a financial professional to determine which savings vehicles are appropriate for you. It is also important to note that these factors will change over time according to your unique situation. Be sure to review your financial situation regularly and determine how adjusting these factors will help you save more.

For more information on retirement: www.bmo.com/retirement

Get the latest BMO press releases via Twitter by following @BMOmedia.

Contact Information