Research Now Before the RRSP Rush

It’s the new year and with that the fast approaching “RRSP season”. Most of us procrastinate on this and wait to the 11th hour to make a decision as to whether to put money into an RRSP and if so how much and into what investment. Usually our money goes to our favourite bank or the one that has made the biggest marketing impact on us. The truth is the financial institutions that market the most tend to have the lowest yielding investments. They cater to the masses. Perhaps 2013 is the year to make a head start on your research and explore the plethora of other investments and methods of achieving tax efficiency using those alternative investments. Some of the overlooked tax efficient vehicles are tax free savings accounts (TFSAs), borrowing to invest using the Smith Manoeuvre and permanent life insurance investment strategies. As for the investments themselves, real estate investment properties, except market products, and permanent life insurance can be great solid alternatives to bank advocated mutual funds and GICs.

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