How to go about securing the best savings strategy in Canada.
Q. I moved from Vancouver to San Francisco about nine months ago, and still have two Tax-Free Savings Accounts (TFSAs) in Canada. One TFSA has $11,000 in it (and has an unrealized loss of $6,000) and is held at a local bank. The second has $23,000 in it and is held through a robo-advisor. However, .... More »
In an earlier column, we looked at how to optimize the timing for taking your Canada Pension Plan benefits—early or late. We also touched on the issue of “survivorship,” mentioning retired advisor Warren Baldwin, who decided to take his own CPP at age 66, in part because of limited options for.... More »
On April 8, 2020, the Insurance Bureau of Canada released the following statement: To help Canadians cope with the financial impact of COVID-19, the Insurance Bureau of Canada (IBC) member companies are offering substantial consumer relief measures. For consumers whose driving habits have changed si.... More »
No one likes to pay fees, but the rate you pay for your investments and how you pay them can be especially troublesome. Making the right decision for your portfolio can be the difference in how much money you earn over the long haul. When it comes to your Registered Retirement Savings Plans (RRSPs).... More »
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…