to find out how Fiscal Agents can help you find
an efficient RRSP.
Use this link to connect you directly to additional useful information
related to RRSPs.
Companion Advisor: Retirement
Factors to weigh when choosing your RRSP investments
You are probably besieged with sales information
on all the latest RRSP-eligible investment products. To make just the
right choice, ask yourself the following questions:
* * *
How far am I from retirement?
The more years ahead of you, the more equity-based investments
you should have in your RRSP. Countless studies have shown that equities
are the best long-term hedge
You need them to multiply the contents of your whole portfolio. As you
get closer to retirement, you can up the proportion of short-term funds
and debt instruments to provide security of principal
as well as income potential. But don't give up on equities, even then,
as you could easily live for two or more decades beyond age 65; especially
if you're a woman. Also inflation will continue eating away at your spending
dollars, whether you're 65 or 80.
What is my attitude towards risk?
An investment that keeps you awake nights is the wrong investment for
you. Be aware however, that even conservative growth investments can be
more volatile than debt
instruments in the short run, but pay off with considerably
higher returns in the long run. So try to balance risks against potential
What other retirement plans do I have?
in a secure company plan, you might be willing to take some risk in your
How knowledgeable am I?
Never buy into investments you don't understand. If you don't
have the time to educate yourself, consult a compatible financial adviser
and tap into his or her experience and intelligence.
What's my potential rate of return?
Take the RRSP label off the investment and ask yourself how
hard you want it to work for you.
Have I maximized my tax situation?
If you have got assets inside and outside your RRSP, consider
keeping your interest-earning investments inside your RRSP, and assets
that provide potential dividends
gains in your non-registered portfolio, where they enjoy some
Will I need to income-split down the road?
If your spouse will have less retirement income than you,
consider a spousal
How much can I afford to contribute?
Invest as much as possible. The more money you have growing
for you, the more likely you are to enjoy a secure retirement. With today's
low interest rates, it's worthwhile to borrow money for your RRSP, but
do plan to repay the loan within the year.
What are the costs?
Make sure that you understand the fees involved.
Don't keep all your investment eggs in one asset basket.
If I am cash-poor, do I have other investments,
such as mutual funds or term deposits, that I could roll into my RRSP?
How does the investment compare with its peers?
Compare the returns on mutual
funds you're interested in with similar funds that have similar
objectives. Most daily newspapers publish mutual fund performance tables
weekly or monthly. Then get your hands on the prospectus and sales literature
of funds you're interested in. They should outline the fund's investment
objectives and tell you about the fund's management team. A strong team
can take even a sluggish fund to astonishing heights over time. Need more
info call a Independent
Financial Advisor from Fiscal Agents.
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