Discover Your Personal RRSP Strategy

Why develop a personal RRSP strategy?

One reason to do so is that everyone has different needs or priorities, partly based on their life stage. For example, a young executive who has more time to build a portfolio might want to take on more risk. An older worker, on the other hand, might want to reduce risk as retirement nears.

As well, personal circumstances vary from person to person. It might make sense for some people, for example, to get an RRSP loan if they can pay it off quickly. However, those with high-interest credit card bills should consider delaying their RRSP until they get personal debt under control.

There might also be times when contributing to an RRSP is not the best choice for you. Each year, for example, many Canadians debate the pros and cons of contributing to a Tax-Free Savings Account instead of an RRSP:

Tax Free Savings Accounts are a relatively new savings vehicle that can be a better choice for some individuals, depending on their age and circumstances
Although both RRSPs and TFSAs offer a range of investments, TFSAs allow you to withdraw funds without tax penalty—an attractive feature for many
Although tax penalties are incurred for early withdrawal of RRSPs, the flip side is that they provide an immediate tax refund

Here are some tips to help you discover your personal RRSP strategy:

Start with your workplace savings plan: If you belong to a workplace savings plan, find out how it can support your savings goals. It might allow you to make payroll contributions, benefit from lower fees, and even provide an employer match program.
Do the math, with help: Online calculators and questionnaires provide an opportunity for customized RRSP advice. Try inputting your personal data to help decide if you should pay down a mortgage or invest, and what investments might be suitable.
Make a customized plan: Set down your savings plan in writing.
Get expert advice: If you need help, or have complex personal circumstances, consider consulting a qualified financial professional.

One of the many strong advantages of being an AUMA/AMSC member is the opportunity to participate in the AMSC Group RRSP and the AMSC TFSA. Both products provide a range of investment options with low fees.

For more information contact AMSC Retirement Services.

--Source, Sun Life Financial

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For information on APEX, MuniSERP, Alberta Communities Pension Plan, AMSC Group RRSP, AMSC Tax Free Savings Account or general pension issues, please contact Bernie Gold, Director, Retirement Services by telephone at (780) 409-8125, toll free at 310-AUMA or by e-mail.

Thank you.

Wendy Graden
Executive Officer, HR Shared Services & Corporate

Bernie Gold
Director, Retirement Services

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