Poll: Merger support rises
Wood pellet exports double
Nearly $500K for car crash
Minister defends right to bail
Vise grips as steering wheel
$36M for vaccine injury 
New US rules for airlines 
Historic Trump hearing 
Pig kidney transplant 
Big loss for Boeing 
Metro sales edged higher
Retail sales slip 
Warriors snakebitten in loss
Iginla off to Europe
Rockets ink prospect
Perry teams with Lu Kala
Megan denies harassment
Swift ‘one of the family’
Here are five strategies for making the most of your contribution for 2010.
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.
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. Diversify, then diversify some more
One of the hallmarks of the market tumult of 2008 was that certain investments that usually behave differently plummeted in lockstep. Look to diversify your portfolio in new ways — for example, by management style, or adding foreign investments to expose you to a different market.
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.
If you have any questions on this topic or would like to find out more about a financial planning topic of interest, please call 250-762-4100 or e-mail [email protected]
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.
This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.
