Here are the first six of 12 common investment mistakes. Avoiding these investing pitfalls will increase your chances of meeting your objectives.

No. 1 -- Not starting early -- Everyone has heard the expression, "Time is Money." Well nowhere is that more evident than with saving for retirement. Consider this example of two brothers; let's call them Alan and Andy. Alan begins saving for retirement at age 30, putting away $500 per month for 30 years. Assuming his investments grow at 7 per cent annually, Alan will have saved about $585,000 by the time he reaches 60.

Now, let's say his brother Andy delayed for 15 years and waited until he was 45 to start saving. He puts away double the amount of his brother, $1,000 per month, but for only 15 years. When he reaches 60, he will have contributed the exact same amount of money, and earned the same interest rate but over a shorter period. What's the result? Andy would wind up with about $311,000 -- almost half the money! Voila, the advantages of investing early. Why does this work? It's the magic of compounding interest, meaning interest is added to the principal and then earns interest itself.

No. 2 -- Not paying yourself first -- You would never consider not paying your monthly mortgage. As a matter of fact, the bank makes you set up automatic payments from your bank account. Why? The bank does not want to wait around until the end of the month to see if you have enough funds in your account to cover your commitment. Why would you treat your own monthly savings with any less respect? Don't wait for the end of the month to see if you have money left over to put away for your future. Set up a monthly contribution plan -- and stick to it!

No. 3 -- Not having a financial plan and not setting goals -- A financial plan is your road map to meeting your financial objectives. Life can (and will) take many twists and turns. If you have a road map, you always know what you have to do to reach your destination. By goals, I mean specific goals. Write them down and commit to them. Work with your financial advisor to determine what you need to live on in retirement and much you need to save each month to get you there.

No. 4 -- Not taking advantage of free money -- Why do it all yourself when you could be using other people's money to help you reach your objectives? If your employer is offering to match your contributions to a group savings plan, take advantage of the free money! The government is also very generous in certain areas encouraging individuals and families to save. For example, they will match 20 per cent of your contributions (up to $2,500 annually) to a registered education savings plan (RESP) for each of your children. There are also grants and tax advantaged ways to put money aside for a disabled family member under the registered disability savings plan (RDSP).

No. 5 -- Not taking advantage of tax incentives to save -- Are you sheltering your money from the taxman? A Registered Retirement Savings Plan (RRSP) is one of the most important tax shelters available in the country. Any tax owing on investment gains are deferred until you withdraw the funds from the plan in retirement. Non-registered money should be saved within your Tax Free Savings Account (TFSA). As of Jan. 1, 2009, each Canadian 18 years or older, is allowed to invest up to $5,000 within their TFSA, which shelters investment gains from tax, be it interest, dividend or capital gain. In fact, these gains are never taxed, even when the money is withdrawn, be it to fund retirement, the purchase of a new car or your vacation. Once those options are exhausted, there are ways to shelter investment growth, or seek tax relief. Canadians have an obligation to pay taxes, but they also have the right to pay only the minimum required.

No. 6 - Ignoring Disability Insurance -- Most people have property insurance on their house -- and why not? A house may be worth $250,000. If the house burns down it would be a catastrophic loss, so property insurance makes perfect sense. How about disability insurance? Consider the following scenario: Mike, age 35, earns $75,000 per year (before tax) and does not have disability insurance. If Mike was to become permanently disabled and could not perform his job, that lack of protection translates into a loss of income throughout his working life (to age 65) -- of approximately $1,463,700 after-tax. Would you not say this is a greater catastrophe? Did you know you are far more likely to suffer a disability than die during your working life?

If an injury or illness prevents you from working for a few years or longer it could be financially devastating. Make sure you have adequate protection to safeguard you, your family and your retirement. The best financial plan in the world can't help you if you lose your ability to earn a living. The goal is to protect your most valuable assets -- and your No. 1 most valuable asset, if you have 3 or more years left till retirement -- is your ability to earn an income.

Stay tuned next week for the remaining six biggest mistakes people make regarding their finances.

The information in this article is not intended to constitute legal, financial planning or investment advice, and it may not be relied upon for such.

Please seek specific professional advice with respect to your particular circumstances, as each client's financial situation is unique and solutions may vary. The strategies discussed herein are general. Mutual funds are not guaranteed and their values fluctuate on a daily basis. Investments may decline in value and investors may or may not receive back the original amount invested.

* Scott Lewis is a Financial Advisor with AttisCorp Financial Group, Inc. in Moncton. Mutual funds are provided through Investia Financial Services Inc. Comments or questions may be submitted to scott@attiscorp.com, or he may be reached at 855-1155.