We could all use a little more good news now and again. This is especially the case when it comes to Canadians and their RSPs. The last ten years have been a roller coaster ride and the global uncertainty on the horizon is not helping. So now to get on to the good news – you can do something about it! I am here today to provide you with some positive money advice in taking those stagnant RSPs and breathing life into them.
Buy Low – Sell Now?
We have all heard the mantra buy low sell high. But if you knew that the issues that caused the financial crisis of 2008 had not been addressed – what would your reaction be? The fact is that your investments in mutual funds through your company matched RSP program are being invested in a system that is not healthy. Everyday news headlines about quantitative easing (inflationary money printing) and the dollar (currency debasement) as well as unregulated derivative trading (someone gambling with your RSP) have become common place. But you have also seen the stock market hit new record highs. So who do you believe? More importantly is what you do right now to bring some good news into your RSP. When is the best time to sell your investments? At the record high. Can you sell your RSPs? No – but you can transfer them somewhere they will be safe from the next financial crisis and keep those record gains.
Direct that RSP to Safety
The first step in any plan is to get to a place of safety. This is completed by taking control of your RRSP and getting it into a non deposit taking trust company. I am able to assist in facilitating this and do so as a complementary service for all my clients (yes that was free). Once you have set up your account and we have sent over a letter of authorization to transfer funds – we await their arrival to a new home. The one major benefit of not delaying this initial step is that you will immediately mitigate any potential future losses. Studies of humans have conclusively shown that we feel twice as strongly about avoiding a potential loss than the exact same potential gain. Don’t become a statistic through procrastination (translated – take action now). P.S. Another loss that you won’t feel anymore are the management fees that you are being charged by your financial planner.
RSP Highest and Best Use
In real estate there is a term for the highest and best use of any particular parcel of land or building that conforms with the optimum benefit to the area. In your RSP – there are a number of areas (3 to be exact) where Canadians just like you are enjoying the best aspects of the highest returns available in asset backed investing. These are much safer than your mutual funds due to the fact that they are collateralized against a real asset and enjoy the steady and predictable returns of the accretive Canadian real estate market.
Your mission – if you choose to accept it – is to take the time and invest in yourself. Get educated on what is happening with your RSPs. Find out where they are invested and in what. Take control now by getting them to a place of safety. Then relax and take your time exploring the options available to you as a Canadian holding an RRSP. You will be delighted as so many of my clients have been in discovering that there is good news in your financial future. Take this positive money advice to the bank (well maybe not the bank). Remember my desire is to be a resource for you in exploring this topic. Your questions are never wasted by typing them in below and I will answer you promptly to the best of my ability.