via The Globe and Mail | February 26, 2015
As the deadline nears for 2014 contributions to RRSPs, you may be tempted to simply add money to your account and buy a guaranteed investment certificate.
That would be a good thing. As interest-bearing securities, GICs and bonds are ideally suited for the tax deferral offered by registered retirement savings plans because interest income earned outside a plan is taxed at your highest marginal rate.
Your RRSP account may comprise your entire investment portfolio. Or you might use it in addition to a tax-free savings account and a non-registered account with a discount broker or investment dealer.
If you fit the latter description, remember to step back and look at where your RRSP fits into your larger portfolio. How should it best be used?
“People tend to look at the asset mix account by account,” says Matthew Ardrey, manager of financial planning at T.E. Wealth in Toronto, “but they should look at it on a total portfolio basis instead.”
Marc Henein, a fee-only investment adviser at ScotiaMcLeod, agrees.