|
Choosing the Right RSP
Every January and February bring a bewildering array of advertisements touting the merits
of all the different RSP products offered by a host of financial institutions.
Gathering enough information for an educated choice is an undertaking in itself. Even worse, you often have to deal with someone who has only a basic knowledge of RSPs. Perhaps that’s why many people, especially those who look on the RSP as merely a tax deduction, wait until the last minute and go for the simplest, most convenient choices. Often that’s a GIC, a money market fund or whatever mutual fund is hot at the moment. Over time, this can easily produce a mishmash of uncoordinated holdings that are probably not good choices for your long-term planning.
Stop and think. Your RSP is so important to your future well-being that it only makes sense to take the time to weigh all the options. Then, make your choice using the same criteria that apply to any other investment: rate of return, capital protection and flexibility.
|
