RRSP

• Flexibility to decide how much you want to invest annually.
• Tax-sheltered investment earnings until withdrawal.
• Deposits made on an annual, monthly or other basis.
• Possibility of investing in guaranteed interest accounts or in segregated funds.

1. Remember any unused contribution room you may have from previous years.
2. Balance your retirement income against that of your lower-income partner. Contribute to a spousal RRSP in his or her name and benefit from the tax deduction.
3. Contribute regularly. Consider investing on a monthly or quarterly basis.
4. If you make a single annual contribution to your RRSP, do it earlier in the year. This gets your money working for you sooner and longer.
5. Borrow to contribute to your RRSP – this offers significant benefits. The gains from one year of tax-sheltered growth often exceed the cost of the loan.
6. Analyze your needs – your financial goals, risk tolerance and the number of years you need to contribute to accumulate the assets you want for retirement – with a financial advisor, who can then recommend appropriate investment strategies for you.
7. Ask your financial advisor to carry out with you an annual review of your portfolio and financial goals to determine whether any changes need to be made to your portfolio structure to reflect changes in your current situation more accurately.
8. If you are a cautious investor and seek to minimize risk, consider building a laddered portfolio to provide for a certain level of liquidity each year if necessary as well as access to the highest possible rates at the time of renewal.
9. Diversify your portfolio. Stocks, bonds and liquid assets all react differently to market changes. Do not limit yourself to a single type of investment. In this way, even if one asset class performs poorly, the others may compensate.
10. Remember that the maximum age for converting your RRSP is 71 years.