Bank of Montreal: RRSP investing— Thinking beyond the deadline

(NC)—With the RRSP season upon us, Canadians will be making their annual contribution to their Registered Retirement Savings Plan before the 2011 tax year deadline of February 29th, 2012.

But RRSP investing isn't limited to one annual contribution. Retirement investments, just like any other investments, need constant monitoring and updating. It's vital to revisit your investments often, to ensure you have the right mix.

In order to determine what is right for you, it is important to look at what you already have in your RRSP, your comfort with investment risk, and your investing timeline including the target end date of your investments.

“Once you have made your initial investment, it is important to continue to monitor and update it as your needs change,” said Serge Pépin, Head of Investments, BMO Investments Inc. “If your target end date is your retirement, then the mix in your portfolio will need to be adjusted as time passes. Your investing needs at age 30 are different from your needs five years from retirement.”

While some people may be comfortable with constantly updating and changing their investments, others are not. For those who are not, BMO recently introduced BMO LifeStage Class Funds, a suite of mutual fund portfolios—each with a specific target date—that are managed to become more conservative over time as the target date approaches. These funds allow investors to sit back and watch their investments automatically evolve.

For more information on how to ensure you have the right mix of investments, visit or speak with a financial professional at your local BMO branch.


There are 0 comments on this post

Leave A Comment