What is my RRSP invested in? A. Your RRSP can hold a wide variety of investments, like mutual or segregated funds, stocks, GICs, bonds and even mortgages. There is no one-size fits-all plan, so your retirement savings should be customized to you and your goals. Are you a risk-taker with a long time horizon until retirement? Then your RRSP will likely hold very different investments than that of someone who’s only a year or two from drawing on their account. Q. Will I use my RRSPs before retirement? A. If you think you may tap into your RRSPs as part of the Lifelong Learning Program or Home Buyers’ Plan, that will impact your plan design. For starters, you should ask about fees or restrictions on withdrawing the funds. Secondly, if you withdraw any contributions made in the previous 89 days, you may lose the tax deduction. So be sure you leave your contributions invested long enough to maximize your RRSP benefit.

Thomas Johnson, Financial Advisor, Cascade Financial Group