Som Seif offers tips for all ages on how to protect your investments during volatile times. 
 

 

You’re watching the 11 o’clock news. Lisa Laflamme is painting a dire picture of the day’s trading. The TSX is down 400 points. The loonie is losing value. Even oil is trading lower. You:
 

a) Ignore this news story and wait for the one about the kitten rescue

b) Panic and move all of your investments into gold

c) Watch the story with interest and see if a trend develops

 

Answer: C. While these are turbulent times, the markets fluctuate and will continue to fluctuate. The average investor can survive this turbulence with a balanced portfolio. Focus on mitigating your risks.

 

Interest rates are at historic lows and have been since 2008. Now is a good time to:
 

a) Borrow as much money as the bank will allow

b) Buy a new house at the most you’re preapproved for because real estate is always a safe investment

c) Focus on paying down your debt

 

Answer: C. Interest rates will not stay this low for long. They’re being kept low artificially because the economic recovery is taking a long time. You want to limit what you owe while the job market is unstable, which it will be for a few years to come.