The Canadian Securities Administrators has issued a list of basic principles to help ensure financial security in retirement for Canadians.

According to the CSA, investors should be the concerned with protecting capital and maximizing its growth.

“If you are an investor who is either currently planning for retirement or already enjoying retirement, know how to make sound investment decisions to protect your capital and maximize its growth,” said Doug Hyndman, chair of the CSA.

The basic principles for investors include:

  • Determine your risk tolerance. Many factors, including your age, financial objectives and income, must be taken into account when determining your investment strategy in order to protect your assets.
  • Have a financial plan. A financial plan will help you determine the length of time you would like to keep your investments, your expected return and the steps to take if your investments fluctuate.
  • Diversify your investments. Diversify your investments in order to spread out the risk.