Investing 101 - RSPs

​​The longer your investments grow, the bigger they grow.

If you're saving for retirement, there's no better way than in an RSP. And the sooner you start, the better. So where do you start?

RSP Checklist

Start saving. It sounds kind of obvious, but if you spend everything you make, there’s nothing left over for your RSP.

Make an RSP contribution every year, starting now. Don’t put it off. Because the biggest thing you’ve got going for you is the power of compounding. The longer your investments grow, the bigger they grow.

Set up a pre-authorized contribution (PAC). If you have a difficult time saving on your own, let us help. Once a month, or however often you wish, we’ll automatically transfer a set amount into your RSP. It spreads out your contribution through the year so you don’t end up scrambling at the contribution deadline.

Putting your RSP to work

Okay, so now you have some funds in your RSP. What do you do with them? Do you invest in stocks, bonds, mutual funds, GICs? Here are some questions you should ask.

  • How many years do you have to retirement? The closer you are to retirement, the more concerned you need to be with protecting what you already have.
  • What are your goals? They’ll dictate just how much time and/or risk you need to take.
  • And just how comfortable are you with risk? If you can’t sleep at night because of your investments, you’ve got the wrong investments.

This is where a Meridian advisor can help. We will work with you to clarify your retirement goals, and then help put together a plan that will help you reach them.

Because the whole point of having a plan is being able to ride out volatile markets instead of responding to every little bit of economic uncertainty. To keep yourself focused on your goals. And to let you sleep at night, knowing that you’re heading in the right direction.

To discover whether a TFSA is right for you vs. a RSP, click here.

Mutual funds are offered through Credential Asset Management Inc.


Meridian Credit Union