Staying on top of your income and expenses can be difficult, and as life circumstances change, you’ll need to make budgeting and other financial adjustments accordingly.

The key is to understand that emotions always exert some influence on investment decisions, but when fear is the main driver, things can veer into undue influence territory.

Investors are often comforted by investing in what is familiar. For Canadians, that may include investing a greater share of their portfolio in Canadian securities.

During accumulation, investors enjoy a tax deferral when the price of their holdings increases. In tax terms, this is known as an unrealized capital gain, and works whether securities are held directly or within a mutual fund.

The Canada Revenue Agency (CRA) doesn’t consider the amount you inherit to be taxable income, but before you receive this inheritance, the CRA taxes property held in the estate of your benefactor (i.e., the person providing your inheritance).

As an investor you may hold stocks and bonds directly, or you may hold them inside a mutual fund. Either way, your investment objectives will be a combination of principal protection, income generation and capital growth.