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Here Are Some of the Best Investments in 2025

If your 2025 resolutions include saving or investing, read on! We’ve listed some of the best investments in 2025... and one ‘outside of the bank’ alternative to traditional investing you may never have considered!

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When it comes to our yearly resolutions, we humans don’t tend to keep them over the long term. According to a Forbes Health/One Poll survey, about 1/5 of Americans only keep their resolutions for the first three months of the New Year – and it’s pretty likely that we Canadians are in a similar boat.

So what does that mean for people who are resolving to save money to fund important life milestones, like a new addition to the family… or even retirement?

We’ve got one word for you: Invest! It’s a great way to put your hard-earned money to work. Depending on your appetite for risk and how many years you have to park your money, it could end up growing quite significantly.

But with so many options, what’s a budget-conscious, resolution-hopeful Canadian to do? Not to worry, we’ve done your homework for you. Read on for the 5 best investments in 2025!

5 of the best investments in 2025

While the “best” investment for you is based on a number of factors that are unique to you and your family, we’ve shared what we consider to be some of the best investments for 2025. These investments balance risk and reward, cater to various financial goals, and align with the needs of both beginner and seasoned investors.

  1. Stocks and Exchange-Traded Funds (ETFs) offer long-term growth potential and diversification. Dividend-paying stocks and broad-market ETFs tend to be reliable choices. Risk/Reward: Medium to high risk; generally strong returns over time
  2. Government Bonds and GICs are not only secure and stable, but they provide predictable income – making them ideal for conservative investors or those nearing retirement. Risk/Reward: Low risk; modest returns
  3. Real Estate and Real Estate Investment Trusts (REITs) can be a good option as property investments can offer steady cash flow and capital appreciation. REITs allow participation in the real estate market without the need for large capital. Risk/Reward: Medium risk; potentially high, long-term rewards
  4. Index Funds (via Micro-Investing Apps like WealthSimple) are accessible for beginners, providing easy-to-use platforms with professional portfolio management and diversified investment options. Risk/Reward: Low to medium risk, depending on fund allocation; steady growth over the long term
  5. High-Interest Savings Accounts, GICs, or GIAs* offer Canadians a safe and reliable way to grow their savings over the short- or long-term with minimal risk, while earning steady interest over time. Risk/Reward: This is as close to a no-risk option as they come; growth is slow and steady

*A GIA (or Guaranteed Investment Annuity) is the insurance version of a GIC. It comes with extra benefits to the investor (you!) and their beneficiaries (your loved ones). Learn more

A Life Insurance Policy with an Investment Component

While the primary purpose of any life insurance policy is to protect your loved ones in the event of your death, participating whole life insurance comes with a valuable investment component called a “cash value.”

So what is this investment component, and how does it work exactly?

Part of your payments go into a cash value account that grows over time on a tax-deferred basis. This makes it a dual-purpose vehicle for insurance and investment, allowing you to borrow against or withdraw the accumulated cash value later in life.

Here’s the thing: With whole life insurance, you get double the benefits – one that you can take advantage of while you’re alive, and one that will provide financial protection to your loved ones after you’re gone. Not to mention:

  • Guaranteed lifelong coverage
    Whole life insurance ensures a death benefit is paid to your beneficiaries, no matter when you pass away, as long as you continue to make your payments.
  • Opportunity for growth
    The total cash value is a combination of the dividend¹ (non-guaranteed) and the cash value² (guaranteed), and they both accumulate interest over the years. If you want your money to do even more for you, take advantage of the compound effect.
  • Stable Returns
    Whole life policies often include a guaranteed rate of return on the cash value component, providing a level of predictability compared to more volatile investments like stocks.
  • Dividend Payments
    Some policies, especially those from member-based organizations like Serenia Life, pay annual dividends, which can be used to increase the policy’s value, reduce payments, or be withdrawn as cash.
  • Tax Advantages
    The cash value grows on a tax-deferred basis, and death benefits aren’t taxable to the beneficiaries. This makes it a strategic option for estate planning or supplementing retirement income.
  • Forced Savings Discipline
    For those who struggle with saving consistently, whole life insurance requires regular contributions, helping ensure a portion of income is set aside for the future. And this, my friends, is how you stick to your finance-related New Year’s resolution. Learn more about forced savings.

Risk/Reward: Low risk due to guaranteed returns; any significant growth occurs over the long term

Why choose Serenia Life whole life insurance?

As a member-based organization with roots that go back nearly 100 years, we encourage kindness by sharing a portion of our profits through community outreach, fundraising, and unique member benefits that help Canadians support their family, their community, and the causes they care about. The more we grow, the more we can give.

We provide members with access to a growing collection of member benefits that make a positive impact on their lives and the lives of others, such as:

  • $1,000 post-secondary scholarships
  • $250 seed funding towards fundraising events
  • Free digital wills (value: $189), or $150 reimbursed when drafting/updating a will through a lawyer
  • And much more

View a full list of our member benefits.

Let us help

If you’d like to consider an alternative investment option in 2025, and purchase a whole life insurance policy for yourself or your children, you’re in the right place. Book a no-obligation call with one of our licensed advisors to learn how whole life insurance can act like an investment for you and your family. Fill out the form below to get started!

Sources³

Finder.com
Savvy New Canadians
The Motley Fool

Disclaimers

¹Dividends are not guaranteed and are paid based on the overall experience of Serenia Life Financial, considering all risk factors. Dividends may be subject to taxation. Dividends will vary based on the actual investment returns in the participating account as well as mortality, expenses, taxes, lapses, withdrawals, and other experience of the participating block of policies. These factors have the potential to increase the value of your policy above the guaranteed amount, depending on the dividend option selected.

²Cash values are accessible via a withdrawal, policy loan, or surrender. These may be subject to taxation and a tax slip may be issued. Accessing the policy’s cash value will reduce the available cash surrender value and death benefit.

³External links are for informational purposes only; they do not constitute an endorsement by Serenia Life Financial. Serenia Life Financial bears no responsibility for the accuracy, legality, or content of the external site or for that of subsequent links. Contact the external site for answers to questions regarding its content.