Take back control of your RRSP with these three easy steps
For any Canadian, who hopes to retire with a secure financial future, it pays to track your saving vehicles to maximize them. For instance, if you have an RRSP, then take the time needed to understand it, and specifically to pay attention to what your money is being invested in. You should understand how much of what your investing is in bonds, stocks, or other forms of securities. You should know what you are putting into your fund and how the fees are structured. Finally, you should expect and receive clear statements, showing the return of your investment in a regular and transparent way.
- Many investors are unclear on exactly what they own in their accounts, so it’s critical to know what type of financial products you own and what is their overall asset allocation between bonds and stocks, and ensure it’s within your risk tolerance.
- Know what you’re paying for fees, and monitor what your returns are like by comparing them to benchmarks.
- From a tax perspective, it’s also wise to look at where you earn those returns. For instance, it’s best to grow your TFSA, because your eventual withdrawals are tax-free. With a RRSP, your withdrawals will be taxed.
“Knowing what you own, knowing what you are paying in fees and knowing what you are earning in returns should be goals for anyone looking to take control of their RRSP.”
(abstract 368IUKXGA59UVTG3K7PD3EID22V6PD 3VE8AYVF8MY7VE8RPLV80IWKNFGF8P A1X84CLJ7N1PLZ)(authorquote 3IKDQS3DQE1RUO20H3CWGH9BCEOCIK 374TNBHA8BWJ19PIG54WBUO0NWTYQH A2T2K4YHQNB5MG)(keypoints 3VEI3XUCZRYNHCENCVSBE999YTMPRF 38F5OAUN5NDN9WUEA6R2P3C2SAPH74 A39ZJ6GDHFZRJW)