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Retirement Planning

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.

Use our Find An Advisor tool to locate a CIBC Wood Gundy Investment Advisor near you and take the first step to achieving the financial future you want.

The information contained herein is considered accurate at the time of posting. CIBC and CIBC World Markets Inc. reserve the right to change any of it without prior notice. It is for general information purposes only.

Clients are advised to seek advice regarding their particular circumstances from their personal tax advisors.

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