Top 10 Tips to make the most of your Registered Retirement Plan

Helping you learn the facts before you invest:

1. Contribute Early.  The earlier you start an RSP, the longer your money will take advantage of tax sheltered growth, and the benefits of compounding interest.  Click on the calculator link to see what time and regular contributions can add up to: Savings Calculator
2. Don't wait until the deadline.  Give your money an extra year to earn tax-sheltered interest.  Again, the compounding effects of interest add up, even if it is over the course of one year. 
3. Maximize.  Your annual assessment from Canada Customs and Revenue Agency will tell you how much you are eligile to contribute.  This is a great opportunity to save taxes and money.
4. Diversify.  A mix of foreign and domestic fixed income and equity-based investments will protect you over the longer term.  Keep your eye on the horizon-RRSP's are a long term investment.  The Winnipeg Police Credit union offers access to the majority of the mutual funds available to be sold in Canada.  Call us for details at 944-1033.** 
5. Contribute Regularly.  It is easier for most people to come up with $50 or $100 a month than $1200 all at once.  Arrange to have a manageable sum automatically moved, free of charge, directly from your account into your RRSP.  When you buy mutual funds on a monthly basis, you will also benefit from Dollar-Cost averaging, and you minimize the probability of purchasing when the markets are at a high.**
6. Buy your spouse a "pension plan" today.  Many of our members in Law Enforcement have the luxury of having a decent pension plan, and although it should not be relied upon solely to fund retirement goals, many spouses do not have this benefit.  You can put any amount of your eligible RSP contribution room into a Spousal RSP.  You get the deduction while your spouse get the money accumulating for retirement.  A win-win situation in most cases.
7. Consider borrowing.  Although leveraging (borrowing to invest) is usually frowned upon in instances of a risky investment, consider opening an RLOC (Retirement Line of Credit).  You only have to sign up once, and can use the line of credit on a revolving basis annually, making payments during the year as if you were investing, or, consider using your income tax refund to pay it off sooner.  It's easy-ask us how at 944-1033!  We have great rates, and rate reductions on the line of credit if you invest your RRSP's at the Winnipeg Police Credit Union as well.
8. Pay yourself First.  Consider your RRSP as your nest egg, and your future.  If you pay yourself first (ensuring that you make regular contributions off of your paycheque) now, you will be rewarded substantially in the long run.  Consider yourself your best investment.  Talk to our Certified Financial Planner for ideas on how to maximize these contributions.  You can call Barb at 926-3141.  Barb is pleased to help you!
9. Invest your income tax refund.  As soon as this windfall arrives at the bank or in the mail, top up this year's RRSP contribution or start a down payment on next year's plan.
10. Call a Certified Financial Planner.  The Winnipeg Police Credit Union has a Certified Financial Planner on staff to help you determine your needs and find suitable ways to achieve them.  You can contact her by phone or email.  Barbara Dalzell, CFP, FMA at 926-3141 or  barbarad@policecu.mb.ca

    **Mutual funds are offered through Credential Assets Management Inc.   Mutual funds are offered through Credential Asset Management Inc.  Commissions, management fees and expenses all may be associated with mutual fund investments.  Please read the prospectus before investing.  Unless otherwise stated, mutual fund securities and cash balances are not insured nor guaranteed, their values change frequently and past performance may not be repeated.