Your RRSP contributions would ensure Income Tax Refunds in 2014. RRSP contributions also have a much larger purpose, that of providing a dynamic boost to your retirement savings potential. This would create the corpus of an accumulated growth fund to skim retirement income from.
Most people line up to dutifully to contribute in RRSP investments, for Income Tax Refund purposes, in citadels of Banking Institutions. They neglect to realize that RRSP's, a legal investment instrument, is created by the Federal Government, to grow your money for your own good. Rarely are Banks able to provide the investment advice on how to grow this very important financial vehicle. Banks, tasked as being custodians of money, also provide credit/ loans to account holders, are unable to provide expert money guidance for investments. Consistently growing RRSP money from $ 1000 to $ 10,000 to $ 100, 000 to $ 1,000,000 and beyond, needs specialized study of how investment options need to be selected at the initial stage itself. Besides the amount, where one invests, its investment periodicity, the double digit growth targeted, is absolutely critical to the investor in RRSP's.
Your aim is to select an advisor who claims expertise and is dedicated towards helping smaller clients grow money. This is a responsibility which cannot be taken casually.. Money grows by consistent monitoring, ensuring better growth and downside protection profiles. It is obvious, Banks are not equipped with advisors at their retail branches to carry out such an onerous and responsible task. They simply aim to provide their account holders their RRSP contribution receipts, for Income Tax purposes. Next time you go to inquire about your investments, you may find a new bank consultant who would look at your investment file for the first time and be equally surprised! Will you happily take that chance with your life's savings? Most Canadians do ! I hope you know better now.
Author - Atul Prakash
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