Many Canadians prefer cash savingsBy The IJ Staff | March 03 2020 03:06PM
Though 77 per cent of Canadians have investments, they are divided when it comes to investing their savings (53 per cent) or keeping cash savings (47 per cent), found the annual BMO RRSP Study on March 2.
"Every Canadian is unique with their personal investing strategy. It is important to understand the benefits of owning a diversified investment portfolio via different investment solutions," says Robert Armstrong, director, multi-asset Solutions, BMO Global Asset Management.
The survey, conducted by Pollara Strategic Insights, found that 57 per cent of Millennials prefer cash savings, while 64 per cent of Boomers and 54 per cent of Gen Xers prefer putting their savings into investments.
Creating longer-term wealth
"There is a place for cash or short-term investments when meeting your short-term goals,” says Armstrong. “However, historical evidence suggests individuals who hold short-term investments, such as cash, to meet their long-term goals, clearly miss out on creating longer-term wealth."
Among Canadians with investments, 62 per cent have money in their TFSAs, which represents 40 per cent of their account holdings. In Canadian RRSPs, the main assets are mutual funds (42 per cent) and cash (22 per cent).
"All Canadians should strive to develop a comprehensive financial plan,” says Armstrong. “A financial professional can help understand and identify the right mix of investments to allow Canadians to take their plan to the next level in order to achieve their long-term goals and dreams."