Key RRSP Strategies
RRSP season is here many investors leave it to the last minute to make their annual contribution. To get you thinking about this year's RRSP contribution, here are some tips every investor should remember.
Develop a fully balanced portfolio
Consider the full range of investments available, along with the risk and return potential of each. With the help of your Investment Advisor, develop a balanced, diversified portfolio of RRSP assets.
Consider a Spousal RRSP
With a Spousal RRSP, the goal is to equalize income in retirement. You can make spousal contributions even if you contribute to your own plan, but the total amount must not exceed your own maximum allowable contribution. Keep in mind that although the assets belong to your spouse in this case, you should watch out for the attribution rules.
Understand RRSP over-contribution limits
All RRSP holders 18 years of age or older have a lifetime over-contribution allowance of $2,000. Beyond that, a penalty of one percent per month is payable on the excess contribution.
Avoid taking a short-term view
By taking a long-term approach to investing, volatility becomes less of a concern and temporary downturns in the market can become buying opportunities. Remember - RRSPs are intended to be long-term investments.
Rely on professional advice
Your CIBC Wood Gundy Investment Advisor can help you set your goals and objectives and build an investment plan around these objectives to determine the right investment choices for your RRSP.
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