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What are my investment alternatives for
my RRSP?
There are many investment
alternatives for your RRSP. Following
are some the most popular:
Guaranteed Investment Certificates
(GICs)
When you purchase a GIC, you are
‘lending’ your money to the financial
institution for a set period of time and
you are guaranteed a specified rate of
interest over that time. GICs are
backed by the issuing institution and
are also insured by either Canada
Deposit Insurance Corporation (banks and
trust companies), Credit Union Deposit
Insurance Corporation or Assuris
(insurance companies). We have access
to GIC's of varying terms, with very
competitive rates, from several
different financial institutions,
including insurance companies, trust
companies, credit unions, and banks.
Segregated Funds
Insurance companies and mutual fund
companies, offer segregated funds which
are similar to mutual funds, but, which
offer long-term guarantees and possible
creditor-proof features. The costs for
these funds are greater than for a
traditional mutual fund and therefore
the potential returns are not as great,
however the long-term guarantees can be
very comforting and there are additional
benefits in non-RRSP accounts.
Mutual Funds
Mutual fund companies offer a plethora
of mutual fund choices, ranging from
money market funds with very little
variability, to funds invested in
Canadian or international government and
corporate bonds or stocks of Canadian
and international companies. By
investing some of your RRSP money in
foreign markets it’s possible to reduce
the potential overall risk and increase
the potential long term return.
There is no right or wrong RRSP
investment. It’s just a matter of
determining the combination of
investments, that’s right for you.
If you would like us to help develop an
investment strategy for you, simply
click on the following text to be
directed to our
Risk Tolerance Questionnaire.
The answers you provide will help us
assess your investment needs, and
tolerance to risk.
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