How to go about securing the best savings strategy in Canada.
At this time of year, it seems like the financial world is awash with information on what is a Registered Retirement Savings Plan (RRSP), the benefits of having one, and how to start one. But there are still a few planning points that Canadians either aren’t aware of or don’t know how to put t.... More »
The goal for your Registered Retirement Savings Plan (RRSP) is for it to grow steadily during your working years so that it’s there to support you when you retire.
But to make that happen, you need to choose investments carefully to ensure that your nest egg continues to build and is well protected.
It can all seem confusing, but it doesn’t need to be. To help you out, we’re going to look at what investments you are allowed to hold in your RRSP, what to consider when choosing investments, which ones are best for your RRSP and why, and which investments are best to be left out entirely.
What Types of Investments Can I Hold in My RRSP?
Investments that can be held in an RRSP include stocks traded on major exchanges, dividend stocks, bonds, mutual funds, exchange-traded funds (ETFs), guaranteed investment certificates (GICs), cash, savings deposits, savings bonds and treasury bills. There are also a few others that are more uncommon.
Factors to Consider When Choosing Investments
As you choose RRSP investments, a key issue to look at is your time horizon before you need the money — which hopefully is a long one as an RRSP is meant for future retirement savings, not short-term savings…