During this period of life, you’ll likely experience two distinct stages. a time of spending – years when mortgage payments, child care expenses, education savings and other costs may strain the bank account – and a period of saving – once the kids have finished school, and the mortgage is starting to look more manageable. each period requires a well-planned financial strategy.

Assessing your priorities

These are the prime income earning years, so you should make the most of this time to pay down your mortgage, any outstanding debts, and contribute the maximum to your RRSP.

Your investments - some general tips

Registered investments – start shifting investments in your RRSP to reflect a balance between capital growth and stability of principal.

Non-Registered investments – for most people, your primary focus should be capital growth, with a secondary focus on stability of principal. Even a one percent difference in return over a long period can have a significant impact on the end result. Tax efficiency is a critical factor to ensure you keep your dollars working for you longer.

Reviewing your priorities

Before you take a look at your investment approach and finances, first review your financial goals and priorities. You can’t always get everything you want, and you may have to make some tough decisions about what’s most important to you and your family. This process is one of the most important steps you’ll undertake in determining your overall financial plan.

Consider the following approach

List every financial goal you have. Once you have everything on paper, you’ll have a clearer idea of whether or not you’ll be able to afford everything on it.
Establish goal importance. Decide which goals are most important and plan ahead for unexpected events. Be prepared for financial emergencies. A good rule of thumb is to set aside 3-6 months of total expenses. Simply reprioritizing can result in more goals being met over the long run.
Determine a timeline. Some of your goals may have a shorter timeline, such as an upcoming vacation, while others like your children’s education, will have a longer one. Make sure each of your goals has a timeline.

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