Staying Invested.pdf

2022 was a difficult year for investors due to rising inflation, interest rates, and geopolitical tensions, resulting in negative returns in both stocks and bonds. Despite market corrections being normal, staying invested long-term has proven to be the best way to accumulate wealth, with bull markets typically lasting 41 months with a 74% average gain, outweighing bear markets' 10-month average duration with a 23% decline. Remaining invested throughout market fluctuations, rather than trying to time the market, ensures participation in the best performing days and weeks, with examples showing that missing the top 5, 10, or 20 days can significantly reduce returns, such as a $100,000 investment in the S&P/TSX Total Return Index from 2000 to 2021 resulting in a 344% return if fully invested, but only 187%, 115%, or 41% if missing the top 5, 10, or 20 days, respectively. Contributing to Registered Retirement Savings Plans (RRSPs) and Tax-Free Savings Accounts (TFSAs) can also help build wealth, with benefits including tax-deferred growth, reduced taxable income, and tax-free withdrawals, and contribution limits and deadlines are provided, such as the $29,210 RRSP limit for 2022 and $6,000 TFSA limit for 2022, increasing to $30,780 and $6,500 in 2023, respectively.