A year-long approach to contributing to your RRSP

Making regular contributions to your RRSP throughout the year alleviates much of the pressure of making last-minute decisions during the hectic frenzy of RRSP season. You can make monthly contributions easily and conveniently with pre-authorized deductions from your bank account. These contributions can be set up for as little as $50 a month.

Spreading your contributions throughout the year gives you the benefit of time, allowing more time for your money to grow. The earlier you begin to save during the year, the longer your money is working for you.

Dollar cost averaging

Investing a set amount of money in market-based funds regularly – whether it’s weekly, bi-weekly or monthly, allows you to take advantage of dollar cost averaging. Because the purchases are made automatically and for a set dollar amount, you will be purchasing more units of a fund when prices are low and fewer units when prices rise. Dollar cost averaging takes the guesswork out of predicting the “best” time to buy.

Asset allocation

Taking the time to develop an investment strategy now will give you more time to make investment decisions that are right for you. Investigate all your options. Think about the questions you want to ask. Find out how much you need to save now to reach your retirement goals.

Do you know which investments are best suited to your goals for retirement? Do you know which funds to choose when the markets can fluctuate dramatically?

Successful investors know an investment’s performance is unpredictable, and the best plans involve a long-term strategy. Asset allocation first identifies your tolerance for market volatility, and then selects an appropriate mix of funds and interest accounts from among the three basic asset classes (cash, fixed income and equities) to help minimize risk and maximize potential return. Asset allocation should be a part of an overall investment plan customized to reflect your personal investment style and goals.

Take a clear look at all your options

When it comes to investing, there are many choices. The best way to make the right decisions for you is to look clearly at those choices. Take your time to understand what investment products are available and then decide if they fit into your long-term strategy.

By Dulari Shah, CLU, RHU
Associated with SunLife Financial

Dulari Shah is an advisor with Sunlife Financial. She is in the business of establishing long-term relationships with her clients. Dulari, helps her clients achieve and maintain customized financial programs. She can be reached via email Dulari.shah@sunlife.com or 416 366 8771 ex 2219