Personal Investor: RRSP options in white-knuckle markets
Making a RRSP contribution can be difficult enough without having to worry about these crazy market. That’s why it’s important to keep in mind that a registered retirement savings plan is an investment vehicle, not an investment.
That means you can still reap the benefit of deducting your contribution from your 2017 taxable income, without having to put your money at risk.
There are several options for RRSP contributions: stocks, mutual funds, exchange traded funds, guaranteed investment certificates (GICs), bonds – even options.
If there’s an equity investment you like, this month’s market selloff could make it a bargain. If the equities you already own took a hit, and you still like them, you can top up your holdings and bring your break-even cost lower.
Or you can park your contribution in cash and wait for a calmer time when you can sit down with an advisor and work it into a broader strategy.