The right Registered Retirement Savings Plan moves now could be worth thousands of dollars later. This RRSP season, as we face continued economic and market uncertainty, smart strategies can make a huge difference in how much benefit you derive from the tax-deferred investment growth that your RRSP offers.

Here are five strategies for making the most of your contributions.

1. Review before investing

Uncertainty in the markets means that having a good grasp of where you are with regard to your retirement portfolio has never been more critical. These questions can serve as a guide before you make your annual contribution.

• Have your retirement plans changed?
• Is your RRSP’s performance meeting your expectations?
• Is your asset mix still on track, in accordance with your goals, your time horizon, and your tolerance for risk?
• Are you still comfortable with the current risk level of your investments?

2. Don’t pay more tax than you have to

Ensuring that you’re not paying more tax on your investment growth than you should means more money in your retirement pocket. Remember that different investments receive different tax treatment outside your plan. By carefully considering which investments to hold inside and outside of an RRSP, you may be able to increase overall after-tax investment returns.

3. Invest Regularly

Consider working your RSP contribution into your monthly budget by setting up a pre-authorized monthly contribution (PAC). By investing regularly each month you will remove the need to make larger lump sum contributions at the end of the year. As well by investing on a regular basis you are investing smaller amounts over a longer period of time. This spreads the cost basis out over several years, and also provides some insulation against changes in market price.

4. Make volatility your friend

Financial market ups and downs can be unsettling, but there is a positive side to price dips: They provide an opportunity to invest at more attractive prices. But if you’re still uncertain about entering the markets, consider dollar-cost averaging through a regular investment program. It’s a structured way to buy more when prices are low and less when they’re high and it could be a good way to contribute to your RRSP throughout the year, instead of waiting for the annual RRSP “season.”

5. Don’t let uncertainty hold you back

Waiting until you think markets have bottomed to invest, or trying to sell at their peak, can be a mistake. Most investors are terrible at “timing the market,” often buying and selling at the wrong times. And don’t be tempted to “park” your entire RRSP contribution in safe, low-return investments while you wait for a clearer market direction. You may end up still parked while rising financial markets leave your investments in the dust.

6. Consider the benefits of borrowing

In some cases, borrowing to invest in your RSP so that you can take advantage of your contribution room makes sense. Increasing your RSP contributions now offers immediate tax savings this year and tax-deferred growth for many years to come.

If you would like more information or would like a review of your investment portfolio and current financial plan, please call 778-478-9759, or e-mail information@northbayfinancial.com

This column is presented as a general source of information only and is not intended as a solicitation to buy or sell investments, or life insurance, and should not be taken as providing, investment, financial, legal, accounting or tax advice. All services provided through NorthBay Financial Services. Mutual funds are provided through Sterling Mutuals Inc. Insurance is provided through multiple carriers. The opinions expressed are those of the authors and do not necessarily reflect the views or opinions of Sterling Mutuals Inc. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds and Segregated funds are not guaranteed, their values change frequently and past performance may not be repeated.

Reflecting back on 2011, it is safe to say that we witnessed a number of changes and challenges, the first starting with 2011 being a challenging year for public companies in Canada. At the beginning of January we witnessed markets in negative territory for the first two out of three weeks, setting the stage that would carry through the majority of the year.

The S&P TSX Composite Index reached its yearly high in the first week of March as the main Canadian index surged above 14,000 for the first time since May of 2008. Gold was surging to new highs, on its way to $1,900 an ounce but the resource heavy Canadian exchanges simply did not follow. Ironically when Gold seemed to peak in September at $1,920 an ounce and then began its subsequent fall to year end levels around $1,550, the TSX and Venture exchanges followed its downward path.

Canadian economic data held steady as we continued to witness low interest rates, unemployment numbers were far less than its U.S. counterpart and our housing sector remained relatively healthy. However it still was not enough to prop-up the exchanges as the Euro zone continued to witness financial woes, slowing demand from China and a struggling U.S. economic recovery tempered consistent data from Canada.

It is always difficult to decide which stories were the most interesting but we cannot forget about Canada’s tech darling, Research in Motion, the maker of the Black Berry, as they dominated headlines throughout 2011. Shares that were once trading around $160 before the financial collapse in 2008 have been pummeled annually since and this year was not different. Institutional investors have been calling for the company to consider selling itself, to sell its wireless patents and to even split the Co- CEO positions currently held by Mike Lazaridis and Jim Balsillie to raise shareholder value. Toss in some global blackout issues, reduced demand and stiff competition throughout the industry, shares of RIM have lost 75 percent of their value.

Another story that continues to garner headlines is the Keystone Pipeline project. Backed by Calgary’s TransCanada Corp., the proposed project would ship up to 700,000 barrels a day from Alberta's oil sands to the U.S. Gulf Coast, but has met stiff resistance from environmental activists along the proposed route. Temporarily on hold, the U.S. State Department has stated that it won’t make a decision on the project until after the 2012 presidential election in November.

Canadian personal finance was also a major point of discussion throughout the year with many analysts, industry watchdogs and even the Bank of Canada Governor all signaling alarm bells over Canadian household debt, primarily stemming from the booming Canadian housing market. While housing prices on a national level continued to defy negative market forces, most of the upward pressure came on the backing of increased consumer debt.

Not directly market related, the Canadian elections of 2011 are certainly worth mentioning. The death of longtime New Democrat Party leader Jack Layton, which came only months after he led the NDP to its best showing in history and becoming the official opposition in the house of commons was one of the top Canadian news story in 2011. This also witnessed the Conservative majority winning a majority and drastically changing Canada’s political landscape from what we have seen over the last several years.

International turmoil took center stage as protests in the Middle East heightened concerns about oil supply routes being shut-down and the massive earthquakes and tsunami that rocked Japan crippling the Fukushima Dai-ichi nuclear plant and threatened radiation exposure to millions of people and products.

However it was the Euro zone debt crisis that dominated the business year in 2011, captivating all of us as we watch and waited.

The first week in November was a particularly grim time in the Euro zone, as the sovereign crisis entered an alarming new phase. The governments in Athens and Rome were in chaos and there was panic on world markets as Germany and France were reported to have begun preliminary talks on a breakup of the Euro zone. German Chancellor Angela Merkel's one-word summary of the situation “unpleasant” must qualify as one of the biggest understatements of the year.

Across the Atlantic, the full enormity of the European debt crisis finally hit home as Standard & Poor's fuelled fears of the contagion spreading with a strong warning about America's failure to tackle its budget deficit. The ratings agency cut its long-term outlook for the world's most powerful economy for first time since Pearl Harbor was attacked 70 years ago, sending shares falling heavily on Wall Street. The move was seen as a "shot across the bows" of bickering politicians in Washington.

Greece was a daily headline and Greek Prime Minister Papandreou clung to power amid growing outrage in the Euro zone over his extraordinary plan to hold a public referendum on the debt deal. There was open war fare in the Greek cabinet as Papandreou faced a confidence vote which saw him abandon the controversial plan and eventually lead to his resignation.

Headlines then shifted to Italian Prime Minister Berlusconi to resign once the country's parliament approved an austerity budget for 2012. The move came after Berlusconi lost his parliamentary majority with just 308 MPs supporting him in a vote on last year's public finances.

In Greece, talks continued over the formation of a "unity" government and European finance ministers gathered to discuss the crisis.

In what was not seen as a particularly helpful comment, Cameron urged Europe to deliver on its promises. "Sort yourself out and then we will help." George Soros, meanwhile, warned that Europe faces a lost decade.

Our 2012 outlook will be out shortly but I am sure it will be another year of capturing headlines

Wishing you and your family, a Prosperous New Year from all of us at NorthBay Financial Services.

If you would like more information or would like a review of your investment portfolio and current financial plan, please call 778-478-9759, or e-mail information@northbayfinancial.com

This column is presented as a general source of information only and is not intended as a solicitation to buy or sell investments, or life insurance, and should not be taken as providing, investment, financial, legal, accounting or tax advice. All services provided through NorthBay Financial Services. Mutual funds are provided through Sterling Mutuals Inc. Insurance is provided through multiple carriers. The opinions expressed are those of the authors and do not necessarily reflect the views or opinions of Sterling Mutuals Inc. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds and Segregated funds are not guaranteed, their values change frequently and past performance may not be repeated.

Incoming Spanish prime minister set to make cuts

News out of Spain was positive as new Prime Minister, Mariano Rajoy, pledged to shrink the nation's public sector and reduce government spending in order to slash the Eurozone's third-largest budget deficit. Prime Minister Rajoy’s first move will be to institute a constitutional amendment on budget discipline approved by both his party and the outgoing Socialists. This new law will call for the debt-to-GDP ratio to be cut to 60% by 2020 and for the deficit to be limited to 0.4% of GDP. Rajoy also announced that Spain's banking system needs to be repaired as it tightens credit standards amid €176 billion of troubled real estate assets.

U.S. housing picture brightens

The latest data from the U.S. Census Bureau revealed a 9.3% surge in housing starts during November. The annualized 685,000-unit pace is the highest since April of 2010 (687,000 units). At the same time, the figures showed that building permits had unexpectedly jumped 5.7% in November, suggesting that starts would continue their expansion.

Canadian consumer spending rises

Canadian retail sales began the final quarter of 2011 with significant momentum, climbing 1.0% in October.  This was the second straight gain of 1.0% and took the three-month advance to 2.7%, the fastest pace since the first quarter of 2010. As well, Statistics Canada reported that gains were seen in seven of 11 sub-sectors, representing 76% of total retail sales. Motor vehicle and parts dealers saw a 2.0% increase to lead overall sales in October. At the same time, sales at furniture and home furnishings stores decreased 0.8% in October, the largest of the four monthly declines.

Longer view

Investment returns from stocks are closely tied to corporate earnings growth. Historically, over the long term, corporate earnings have been fairly stable and have grown along with productivity gains and inflation. Stock valuations, though, are more volatile than earnings, since they are influenced by investor sentiment, which swings between optimism and pessimism. Recent uncertainty about the pace of the global economic recovery, centered on government debt in parts of the developed world, has added to market volatility. It is important to keep a sense of perspective, to remember that recessions do occur from time to time, and that they are followed by recoveries. The summer market correction has caused stock valuations to fall to levels that are substantially below their long-term average – and this has provided investors with a rare investment opportunity. We believe investors are best served by staying invested and ensuring they maintain a diversified portfolio that matches their risk tolerance.

If you would like more information or would like a review of your investment portfolio and current financial plan, please call 778-478-9759, or e-mail information@northbayfinancial.com.

This column is presented as a general source of information only and is not intended as a solicitation to buy or sell investments, or life insurance, and should not be taken as providing, investment, financial, legal, accounting or tax advice. All services provided through NorthBay Financial Services. Mutual funds are provided through Sterling Mutuals Inc. Insurance is provided through multiple carriers. The opinions expressed are those of the authors and do not necessarily reflect the views or opinions of Sterling Mutuals Inc. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds and Segregated funds are not guaranteed, their values change frequently and past performance may not be repeated.

The RDSP is a savings plan first introduced by the Federal Government in 2008. This is the first plan of its kind in the world and is designed to help people living with disabilities to save and become more financially secure.

Below are some of the more common questioned asked:

Q. Who qualifies for the RDSP program?

A. Any Canadian resident under the age of 60 who have their Disability Tax Credit with The Canada Revenue.

Q. What are the benefits of the program?

A. There are $90,000 in government grants and bonds available over a 20 year period for those who qualify. As well, contributions grow tax deferred and are taxed at the plan holders marginal tax rates. Plus when you start making withdrawals from the plan, they do not impact any of your BC or Federal financial assistance programs.

Q. Are there any restrictions when I withdrawal the funds?

A. Yes. The Federal Government wants to ensure that this is a long term savings plan, so there are some restrictions on when you can withdraw the funds if you received government bonds and grants. However, if there are no Government contributions then withdrawals are not restricted.

Q. Are there restrictions on what I can spend my savings on?

A. No, you can spend the money on anything you want!

If you live with a disability, care for someone who does or are an advocate, you should take the next step and find out more about the RDSP program. The Savings and Estate Planning value to this plan are tremendous!

For more information, or to meet with an RDSP Specialist please call 778-478-9759 or e-mail information@northbayfinancial.com

The information presented as a general source of information only and is not intended as a solicitation to buy or sell investments, or life insurance, and should not be taken as providing, investment, financial, legal, accounting or tax advice. All services provided through NorthBay Financial Services. Mutual funds are provided through Sterling Mutuals Inc. Insurance is provided through multiple carriers. The opinions expressed are those of the authors and do not necessarily reflect the views or opinions of Sterling Mutuals Inc. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds and Segregated funds are not guaranteed, their values change frequently and past performance may not be repeated.