The Vault
The essentials of a successful RSP
by Graham Barber

Why we all need an RSP

Ac registered Retirement Savings Plan (RSP) is an investment in your future. It's really that simple. Canadians are living longer and spending much more time in retirement than ever before. Investing inside an RSP is the best way to help ensure that you'll have enough money to last during your retirement years. Consider also these great reasons ton make your RSP a priority;

-Your RSP contribution is tax deductible

- The money in your RSP grows tax free

- It's never too late to start, the sooner you do, the more money you'll have at retirement (the power of compound returns)

Did you know? You can use the money in your RSP toward the down payment on your first home, or to cover some of the education expenses if you decide to go back to school.

Getting started

With all of the investment options available, where do you start? As with all important things, it's best to have a plan. The plan that's right for you will depend on your age, your time horizon, how comfortable you are with risk, and your retirement goals. This is known as your "investor profile". Knowing the type of investor you are will help determine the best type of investments to hold in your RSP.

Finding the right investment for you

There are three major types of investments (also known as asset classes); cash for liquidity; fixed income; and equities for growth. Your RSP should hold a combination of these asset classes, in proportions that you're comfortable with and that will help you meet your goals.

Whether you are just getting started, or re-evaluating your existing RSP, there are financial tools and expertise available to help you determine the right asset allocation mix based on your needs.

The proceeding information was provided by Graham Barber, Branch Manager of Scotiabank, Alcona Branch.

The Scotiabank, Alcona Branch, is located at 1161 Innisfil Beach Road, (705) 431-6116. The Vault is a weekly series of articles provided by Graham Barber with financial advice and suggestions.