All about investment

by Kelly P Kramer

I worked as a financial planner for awhile in my life, before deciding I enjoyed running a business more. As a financial planner I was always asked by people 'what is the best RRSP rate? Everybody always assumed that someone out there new what the best meant or was, but was keeping it from them. My response was always the purpose of investing in RRSP's is to increase your wealth over time and to not worry about what is the best. The problem is that from year to year different funds perform at different levels. Here is the real secret to investing in RRSP's

The first thing you need to do is decide if this is the vehicle for you. What about other forms of investing for your retirement? Such as real estate, stocks, bonds, business, or build some form of long term passive income? Do any of these wet your appetite? If so maybe you should do some research on those forms of investing, if not then keep doing what you are doing, or maybe start to do more than one form of savings for your retirement. Ever hear of multiple streams of income? Now onto the secret, the plan works best over a long period of time and it is called compound interest.

Over time if you consistently save and your money is in a safe investment you will have enough for retirement. So stop being so concerned with the best RRSP rate and take that extra energy and build another form of income. For instance a website that generates just $1000 per year is the same as having $20,000 in your RRSP at 5% return. Not bad, how about a revenue property that brings in $12,000 per year? That is the same as an RRSP of $120,000 at 10% still pretty good.

I am not saying to not invest in yours, but why not do more than just that? Beats trying to chase the best rate and not finding it, doesn't it? Ok, You really want to know what the best rate is? In my years I have seen many different rates. Some low with the banks at 2%, some are high risk with foreign investment at 60%. Are either of these consistent? Not normally. Is there ways to consistently get a high rate of return? I can only answer no! Any other answer would be misleading. Good Luck and happy investing.

Author

Get your free report and/or enter into our FREE contest at http://www.edmontons-business-directory.com/RRSP_Free_Report.html Kelly P Kramer buys and sells real estate, helping people get good returns on their RRSP's.