Low risk, low return investments aren't always as safe as they look. A low-yielding portfolio leaves you at the mercy of inflation and other forces. But there are ways to increase your RRSP's return potential without undue risk.

RRSP basics

A quick and easy guide to RRSP principals, deadlines and
contribution limits.
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RRSP vs. TFSA

The tax-free savings account is another good investment vehicle, but should you put your money in a TFSA over an RRSP?
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Take the worry out of investing

RRSP contributions get easier with a dollar cost averaging plan. Learn the benefits of regular contributions.
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GICs vs. equities

Often symbolizing the two extremes of investor risk, learn the importance of balancing exposure to each.
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The risk of "no risk"

Managing risk is important, but decreasing your risk levels too much might lead to disappointment down the road.

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Your financial future, at a glance
Enter some basic information about you and your investments and let our Retirement Calculator tell you if your plan's on track.

Click here to see how $100 a month can grow in an RRSP versus a non-registered plan.

 

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Stability, growth and yield
Take control of your future. Our top picks offer the income and risk management you need in today's uncertain markets, with enough yield and growth potential to help ensure your RRSP can stay ahead of inflation.

 

Templeton Global Bond Fund
An award-winner five years in a row*, the Fund invests in global government bonds, which offer higher yields than their Canadian counterparts.

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Why you should choose this solution 		 

Bissett Canadian High Dividend Fund
This 100% Canadian solution invests in dividend-paying stocks that can deliver better income and growth potential than domestic bonds alone.

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Why you should choose this solution 		 

Bissett Strategic Income Fund
Combines the stability of Canadian bonds, dividends from Canadian stocks and the potentially higher yields of foreign fixed income.

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Why you should choose this solution 		 

Quotential Diversified Income Portfolio
An actively-managed solution with exposure to multiple income sources in a single package.

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Why you should choose this solution 		 

 

Contact your investment advisor today to find out how to give a boost to your RRSP income solutions.

 
Important Legal Information

* In 2011, for the fifth consecutive year, Templeton Global Bond Fund (Series A), led by Dr. Michael Hasenstab, was awarded the Canadian Investment Award for Best Global Fixed Income Fund. The Fund also received the 2012 Lipper award for the best Global Fixed Income Fund in Canada over five years and 10 years, for the fourth year in a row.

RRSP basics

• RRSP contributions can reduce your taxable income
• Gains in your RRSP investments grow tax-free until they're withdrawn
• You can borrow from your RRSP to help pay for a first home or higher education

When's the RRSP deadline?
February 29, 2012 is the last day to make a contribution that will lower your 2011 taxable income. But you don't have to wait for tax season to save for your retirement. Click here to find out how your investment can benefit from a systematic purchase plan.

What's my contribution limit?
Generally, either 18% of your income or $22,450—whichever is less. For your personal limit, refer to your Notice of Assessment or contact the Canada Revenue Agency at 1.800.959.8281.

Speak with your investment advisor to choose the strategy that's right for you

RRSP vs. TFSA

The best option comes down to how much money you make now and what you expect to make in retirement. The secret is to keep your marginal tax rate as low as possible—now and later.*

If you earn less than $30,000, your tax rate is already low, so the RRSP isn't a huge tax benefit. With a TFSA, you're contributing after-tax dollars, but won't have to pay again when you withdraw your money later.

If you earn $30,000–$80,000, both may be equally useful, depending on your current and future marginal tax rates. If your income's higher now than you expect it to be at retirement, consider an RRSP. If not, a TFSA might be better.

If you earn $80,000+, take advantage of both. Consider using your annual RRSP tax deduction to fund your TFSA.

Speak with your investment advisor about the strategy that's best for you.

* c/o Saver's Choice: Comparing the Marginal Effective Tax Burdens on RRSPs and TFSAs, C.D. Howe Institute, 2010

Automatic investing

With a Dollar Cost Averaging (DCA) strategy, you invest a fixed amount of money at regular intervals, easing your way into the markets and smoothing out the ups and downs of changing prices.

What are the advantages?
Convenience: With a DCA plan, there's no more worrying about when and how to invest your RRSP contribution.

Predictability: knowing exactly how much you'll contribute over the next 12 months makes it easier to plan your finances.

Smoother returns: Smaller purchases at varying prices help even out performance over the long term.

Learn more about the Franklin Templeton DCA program.

Speak with your investment advisor to choose the strategy that's right for you.

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Which are the better choice?

You have to protect what you have while building enough wealth to last a lifetime. For most investors, the best strategy is a balance of safety and risk.

However, over the past 20 years, GIC returns have steadily declined and are likely to remain in the cellar. Many experts believe only equities—including mutual funds made up of a diverse mix of stocks—can provide enough growth to sustain a long retirement.

Equities do carry risk. Over-exposure during a falling market puts your savings in danger. On the other hand, if you avoid equities altogether, you might never save enough to afford the retirement you deserve.

Which brings us back to balance. Speak with your investment advisor to find the asset mix that's right for you.

The risk of "no risk"

The under-the-mattress strategy: deposit $1.00 today and watch inflation turn it into $0.97 next year. Safe, sure—but not exactly a winning formula.

Unfortunately, many Canadians are setting themselves up for such disappointment by sidelining their RRSP assets, moving to zero-return investments until the markets reheat.

So what are your options? There are plenty of choices for risk-averse investors. Rather than waiting it out in no-risk, no-reward holdings, consider income-generating mutual funds made up of a mix of global government bonds, corporate credit, or dividend-paying stocks. All of these offer potentially higher yields, without taking you outside your comfort zone.

Speak with your investment advisor to find the solution that's right for you.

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Templeton Global Bond Fund



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Bissett Canadian High Dividend Fund



Visit the fund page

Quotential Diversified Income Portfolio



Visit the fund page

Bissett Strategic Income Fund



Visit the fund page