Three last-minute RRSP tips
(NC)—Time is running out to make your RRSP contribution and take advantage of a tax deduction for 2010. With the March 1, 2011 deadline fast approaching, here are three last-minute tips to consider:
1. Find an advisor
Chasing returns or the next big thing can only lead to disappointment. Guidance from an experienced investment advisor will take emotion out of the mix and help you meet your financial goals.
More information on finding an advisor is available on websites like www.franklintempleton.ca.
2. Contribute now
Don’t worry about how to invest your RRSP contribution. Temporarily park your contribution in a money market fund today and rebalance your portfolio tomorrow.
“Your advisor can help you allocate your RRSP contributions according to your goals and risk tolerance at a later date,” said Don Reed, president and CEO, Franklin Templeton Investments Corp.
3. Diversify, diversify, diversifyCanada’s equity market represents only about five per cent of the world’s entire stock market. It makes sense to diversify your portfolio and invest in global markets. Consider different asset classes too to limit risk.