Hey, February is getting closer and your banker will surely call you (if it’s not done already!) in order book an appointment and invest into a registered retirement saving plan. The market looks like shit for the past 18 months and he has the guts to ask you to put more money in it? Yeah right! Hahaha! You may want to reconsider a few RRSP investing strategy before you make your final decisions.
Linked notes in your RRSP?
I am personally not a big fan of linked notes (you can read more on the topic here). However, it has some advantages if you have been roughed by the markets lately. If you do not consider investing in mutual funds, indexes or other product related to the market due to their volatility, you might like linked notes. They guarantee your capital 100% and offer a yield related to the market. They are usually offered for 3 year and older (up to 8 years). Since this is an investment for your retirement, you don’t really have to worry about the investment term.
Cut the fees in your RRSP account
If you are young and still accumulating on a monthly basis, this strategy might be difficult to apply. However, if you have more than 100K invested in your RRSP account, you will love this strategy.
Instead of paying fees to have your fixed income managed you can do it yourself or having your financial planner / broker do it for you for 0% MER’s! By doing a bond ladder will avoid unnecessary fees on something that will give you only 4 to 5% yield anyway. So separate your RRSP account into 2 part according to your original asset allocation: a part with 0% MER’s with a bond ladder and the other part fully invested in the markets (Canadian, American and international markets).
Get a rrsp loan to catch up unused contributions.
This is an easy and simple way to boost your RRSP: force yourself into a periodic investment 😉 You will have to do it backward and contract a loan to create the saving habits you it is better now than never 😉
Once your rrsp loan is reimbursed, keep the same amount and invest it directly into your RRSP’s. Therefore, you won’t have worry about your RRSP contribution and retirement. You will be set on semi automatic pilot 😉
What is your RRSP strategy for 2009? Are you going into index funds? Directly into ETF’s? GIC’s and corporate bonds?
|How I Suck at Not Paying Debts||Hitting 6 Figures Income at 28|
|How I Get a Huge Income Raise Each Year||Making $125K Online in 12 months|
|How I Buy Blogs||Most Debated Articles: The Primerica Saga|
|How I Have Survived My MBA||What is So Wrong With Making Money?|
|How I run multiples blogs and makes money without burning out|