(Stephen) This is another segment in CFMWS, Financial Literacy Series. Today, we're looking into investing. You're never too young to start investing. The question is, RRSPs, stocks or bonds or Bitcoin. What is the best way to secure retirement and live that life comfortably once you're done working? Ravi Chavali is a SISIP financial advisor based in Edmonton. He's here to guide us through this financial journey. Thanks for helping us out today. (Ravi) Thanks. Stephen, and I'm really happy to be here. (Stephen) What should people consider when looking into investing for the first Time? (Ravi) It's different, some people-- This is how I put it for most of the members that I meet. The most important-- One of the most important factors we ask them to focus on is their personal financial road map, right? Where do they want to be with their finances in the coming years? It could be, maybe, I want to buy a house in the next five years or I need to buy this car, I need to get my... I want to travel around the world in a few years. Whatever that is, whatever their personal goals are, that's where I would start. That's one is understand where you want to be financially down the lane. Number two, I would focus on how comfortable they are with risk, right? Risk is basically, as you know, especially the stock markets, there are their volatile at times, depending on where you invest your money. And it's really important to take your personal risk and your personal comfort zone into consideration. I always keep telling my member that if you're a person who's lose sleep over money, taking too much risk may not be the right way for you, right? And there are few other factors. So, as I said, first, know your personal road map, to know how much risk you want to take in your investments, how comfortable you are with taking risk, what helps you sleep at night. Three, I would say, diversify your investments. It's as the saying goes, don't put all your eggs in one basket. Invest in different investment vehicles. so that you manage your risk, right? (Stephen) How old or how young should you be before you start investing? (Ravi) It's simple. If you start in your 20s, maybe you just save $100 a month. If you start in your 30s to make up the same amount, you probably got a thousand dollars a month, right? So where you want to be? If you want to make, let's say, 50,000 in your retirement, starting age 65. In order to save up for that, if you start at age 20, you save less each month, you have more clash flow; whereas if you started 30, you need to make up for the ten years you lost, so starting early is always good. (Stephen) It will be scary when people hear though, you know, I have to save a million dollars or 2.5 million dollars by the time I'm 65. How can I do that? Is that a scary number for people? (Ravi) Yes, absolutely, it is. I get that every single time when you say you need to save two million dollars. It just scares them, but once you show them how to get there, maybe you can start as low as $100 a month. Again, I'm talking to a person who's in his 20s. But if you start, you can start at $100 per month and still get there. The numbers seem scary, but it's the power of compounding, right? You get interest, you get interest on interest. You keep going that way, so it's not so difficult to get there. Talk to a financial professional. This is what I would say to military members. You have a free resource SISIP. Talk to us, we'll help you get there. We'll take you there, so talk to us. It's a scary number, but it's not difficult to be there. (Stephen) In showing us the way, how do you make them feel comfortable? How do you make them feel, like, the 25-year-old who comes in hasn't done anything? You're a smart guy cause you're in investment banking and you know stuff. How do you make them feel, "Okay, I'm willing to talk to you and put all my financial cards on the table?", because it would be a daunting task for many. It's one of the most important things we do at SISIP. Again, one for military members is we understand their lifestyle. A lot of, again, my previous manager used to be from the forces. They are all veterans. We have colleagues whose husbands are currently-- their spouses are currently in the forces. And we deal with military members all the time. That's the only people we deal with, so we understand your life, we understand the stress that you are in. We understand that the level of stress that your job entails. So, that being said, whenever, let's say, a 25-year-old, or anyone who approaches me, the first thing is try to learn about them, be a really good listener, and you can easily associate, right? You have talked to so many members and you have so many people who have shared all their stories with you. So, you have all these bunch of stories. You have all these experiences that you can share with the new member. It's easy to talk too after a while. It's really easy to be a good listener, understand what that member needs. Make the entire meeting about them. It's very easy to make the meeting about the member. It's all about the member. (Stephen) Ravi, what tools are available out there to help people with investing? (Ravi) So, there are a lot of... one again, as I said, that SISIP is your best tool. I would say, like, any major financial decision that member is looking to make that could be as easily as buy a small, as buying probably a 2,000 or 3,000 dollar piece of furniture, or buying a half a million dollar house. Any major financial decision that you're planning to make. Just talk to us. We are one phone call away, right? We'll help you. We'll look at your personal financial situation and make an assessment whether it's a good idea at this point of time, or maybe you can push this a couple of months later. The important thing is don't... The biggest problem that we see with military members is sometimes, yeah, it's temptation. You want to purchase stuff, you want to buy stuff, but don't end up in big debts, right? And that's that happens a lot. That is never good. Having too much debt is never good. Money would never be in your pocket, right? You got to manage that wisely. It's your hard-earned money. You have worked really hard for it. And the idea is to keep as much of it as possible and spend it for yourself. Don't pay a huge amount of interest to the bank or someone else, right? Don't get yourself into any major debt. So any major financial decision that you need to make. One of the biggest tools you have. It's a free, absolutely free resource. You have SISIP. Give us a call, we're just one phone call away. (Stephen) Ravi, thank you for this, you're great. Thank you. Ravi Chavali is a SISIP financial counsellor based in Edmonton. Contact your local SISIP financial advisor today at <i>sisip.com</i> to review your financial plan and set yourself on a path to financial health.