News Releases

TORONTO, ONTARIO--(Marketwire - Feb. 5, 2012) - As the February 29^th deadline approaches to make a contribution to a Registered Retirement Savings Plan (RRSP) and as part of its ongoing commitment to improving financial literacy, BMO Financial Group will be providing daily retirement tips during the month of February from BMO Retirement Institute Head Tina Di Vito's new book 52 Ways To Wreck Your Retirement…And How To Rescue It.

Tip Number Nine:

Know how much risk you can tolerate

Understanding how much risk you can tolerate can make you a better investor because you'll make investing decisions that are suited appropriately to your personal situation.

To determine your risk tolerance:

• Complete an investment policy statement that identifies your investment objectives, time horizon and the contributions or withdrawals you will make over time.
• Younger investors with a longer time horizon could be more aggressive and have a higher concentration in equity investments.
• For those closer to, or in, retirement, it's important to include conservative, shorter term investments that reduce volatility in their portfolio as they head into retirement.

Tip Number Ten:

Don't play it too safe

Being too conservative in your investment approach actually adds additional risk and could cause you to run short of money over time. By being too cautious, you may not be able to keep up with inflation; over time this will greatly reduce your buying power. When you invest, you need to earn a rate of return that is higher than inflation plus income taxes if you want your money to grow.

For more information on retirement: www.bmo.com/retirement.

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