Family Finance

Your RRSP Checklist for 2009

  1. If you haven’t started saving, start now. It’s never too late to invest in your future.
  2. Invest early and often to take advantage of the “time value of money.” Investing today will let you reap more tomorrow. Because your investments are allowed to compound tax-free, there are significant advantages to investing early in the year or on a monthly basis.
  3. Choose mutual funds and put your money in the hands of professionals who have the investment know-how to help you reach your retirement dreams.
  4. Maximize your RRSP contribution to take advantage of your single greatest opportunity to save for retirement and defer taxes.
  5. Don’t be too cautious and choose low-risk investments only. A diversified portfolio should include a variety of assets to minimize risk and maximize return.
  6. Think long-term instead of letting short-term market volatility sway your investment decisions.
  7. Take advantage of dollar-cost averaging with a pre-authorized chequing plan that spreads your mutual fund purchases over time.
  8. Consider an RRSP loan1. Visit mackenziefinancial.com/calculators and use our helpful retirement planning tools to determine your savings needs.
  9. If you don’t have the cash available, consider moving non-registered investments to your RRSP in kind.
  10. Don’t wait until the last minute to meet the March 2nd contribution deadline – investment decisions shouldn’t be rushed.

1 Using borrowed money to finance the purchase of securities involves greater risk than a purchase using cash resources only. If you borrow money to purchase securities, your responsibility to repay the loan and pay interest as required by the loan agreement remains the same, even if the value of the security purchased declines. Please ensure that you read the Leverage Disclosure Statement found in the loan application and that you discuss the actual risks and potential benefits of borrowing money with your financial advisor.