Do Your RRSPs Have Performance Issues?

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Canadians have discovered how to grow their RRSPs three times faster than expected with less risk and no fees! Your RRSP may not be famous for it’s elite performance to date, but you can fix that moving forward with RRSPperform.

The RRSP may be the most misunderstood wealth-building tool available to the Canadian consumer today. If you were 40 years old and had $50,000 in your RRSP today, it could be worth more than $300,000 by the time you reach retirement and it’s remarkably easy to do. Here are the 3 things that can hold you back and some free advice about how to break free.

1. There is over $600 billion of unused RRSP room available amongst 22 million working age Canadians from coast to coast. That’s almost $30,000 per adult Canadian of unused room.

Do you know how much unused room you have? It would be good to check – and you can do so quickly by looking at your last notice of assessment (the paperwork that came with your tax refund cheque attached to it). This unused room is a pay cheque waiting to happen. If you make more than $28,000 per year, using up your unused contribution room could net you a tax return of $9,000 or more this year!

2. Most people don’t really understand how contributing to an RRSP works and what the benefits really are.

Do you? I mean, if you had to rate your own knowledge and understanding of the RRSP on a scale of 1-10, how would you score? Knowing is half the battle, so here’s what you really need to know. You can contribute up to 18% of your gross annual income to your RRSP every year and if you don’t use up the whole 18% each year, the unused portion carries over to the next year so you can always catch up later in life using equity from your home, or cash savings. As far as tax implications go, understanding your RRSP is simpler than you might think.

a. Every dollar that you contribute to your RRSP reduces your taxable income for that tax year by a dollar. If you are in a 40% tax bracket, that means that every thousand dollars you contribute to your RRSP increases your tax return by $400.

b. Once your RRSP contributions are invested, every dollar they earn is tax-free until you decide to liquidate them. If you wait until you are retired to take the money out, you will likely pay much less tax on it than you would today.

3. Too many Canadians are investing their RRSPs the way it’s always been done, despite clear evidence that the way it’s always been done isn’t working.

If you survey enough Canadians on the things that matter the most to them when investing for retirement, the following 3 answers will establish themselves as the most popular.

a. Security
b. High annual returns
c. Low fees

Here’s the disconnect. For decades the most popular investment choice for Canadian RRSP holders has been the mutual fund. All mutual funds are unsecured, the average annual return is nothing to write home about, and mutual fund companies in Canada charge investors some of the highest set-up and management fees in the world to participate. So why are we doing it? There could only be one reason – a lack of quality alternatives that are easy to understand, safe, consistent and highly profitable.

Introducing RRSPperform.

RRSPperform is quickly becoming the consumer’s first choice for hassle free, consistent growth in the RRSP arena, and why not? With RRSPperform you’ll enjoy a fixed rate of return of no less than 9% per year with bank grade security, and absolutely no set up or management fees to play. It’s practically RRSP heaven, and getting started is a walk in the park. At Magnetic Mortgages and Investing, we have a team of fully qualified and licensed professionals waiting to take care of everything for you. All you need to get started is a reasonable degree of dissatisfaction with whatever your RRSPs are doing now, a statement of your current RRSP holdings and the initiative to reach out and let us know you’re interested.

For more detailed information about RRSPperform, you can call the RRSPperform service line at 416-294-2756 and speak to someone qualified to answer your questions. Nothing is more frustrating than a flaccid RRSP, we get it. There’s no magic pill to fix one, but if there was it would be called RRSPperform, it would be little and it would be blue.