PLAN YOUR RETIREMENT

It takes careful planning years in advance to achieve the retirement of your dreams. So don't wait: start building for your retirement with tools to help you accumulate the capital you'll need to maintain your current lifestyle. The Registered Retirement Savings Plan (RRSP) is the ideal tool for achieving this goal. With an RRSP, you can accumulate funds tax free until you retire. Consult here a list of retirement planning capsules.

Here are a few tips that will help you achieve your retirement objectives:

Diversify your assets
Start early
Contribute at the beginning of the year or monthly
Review your portfolio
Contribute the maximum or as much as you can
Include interest-bearing investments in your RRSP
Contribute to your spouse's RRSP
Borrow to make your contribution

DIVERSIFY YOUR ASSETS

Diversification is a fundamental rule of investing since it is the best way to ensure high potential returns while minimizing risk. This is how it works: by combining different types of investments, you can take advantage of the very best, while minimizing exposure to lesser performers and thereby generating a solid long-term return. But how do you know whether your portfolio is well diversified or which products must be included and in what proportion?

To select the investor profile and asset mix that suit you best, complete the Personalized Investment Plan.

START EARLY

CONTRIBUTE AT THE BEGINNING OF THE YEAR OR MONTHLY

If you make a contribution at the beginning of the tax year, you will receive more interest from interest-bearing investments. Alternatively, you can use our periodic investment plan to make monthly contributions. Budgeting for periodic savings is easy and you can choose the frequency of contributions.

REVIEW YOUR PORTFOLIO

Your needs and financial position are constantly evolving. At least once a year, check whether your portfolio continues to reflect such changes. You should also review your portfolio whenever a life event has an impact on your investor profile (home purchase, birth of a child, inheritance, loss of employment, etc.).

CONTRIBUTE THE MAXIMUM OR AS MUCH AS YOU CAN

Save more by taking advantage of unused RRSP contribution room and by making the maximum RRSP contribution. Investing an extra few hundred dollars in your RRSP every year could translate into thousands of dollars down the road. Use salary increases, annual bonuses, tax refunds, investment income or any other additional income to maximize your contribution. You could also use your tax refund to finance projects or pay off debts.

INCLUDE INTEREST-BEARING INVESTMENTS IN YOUR RRSP

If you have a registered account (RRSP) as well as a non-registered account for your retirement savings, make sure to include investments that generate interest income (e.g., guaranteed investment certificates, stripped coupons, bonds and bond funds) in your RRSP. Since such investments are more heavily taxed, you can reduce your tax bill. However, even though tax is an important aspect of investing, your investment strategy should always match your investor profile.

CONTRIBUTE TO YOUR SPOUSE'S RRSP

By contributing to an RRSP on behalf of your spouse, your retirement income will be split between the two of you. Your tax rate should then be lower than if you had a single aggregate income.

BORROW TO MAKE YOUR CONTRIBUTION

Taking out an RRSP loan is a smart move. The income tax you save can be used to partially or fully pay off the loan. And in the long term, the funds you accumulate in your portfolio will far outweigh the cost of borrowing.