Back in March, I started reading Bruce Sellery’s The Moolala Guide to Rockin’ Your RRSP, and when I got to this page, I felt like I got a much-needed figurative slap in the face.
I have a RRSP savings account. And I do have more than $25,000, but never even figured to look at my interest rates. I checked and found that it was an appalling 0.8%, not even matching the average rate of inflation, which, in Canada during 2015, was 1.13%. Since then, I’ve been trying to figure out how I should invest my RRSPs.
Investing is one of my biggest weaknesses, and I now I drag my feet when it comes to researching investments, therefore, it’s a task that I have to hit head on. Sellery suggests, as a rule of thumb, that the percentage of your RRSPs allotted to fixed income investments should be similar to your age. The remainder should be dispersed amongst equities.
This morning, I mapped it out in my new Rocketbook*, then digitized it to Evernote through my mobile app.
While I need to do some research for the equities, I decided to start with a 2-year GIC with a return of 1.6%. Yeaaaaahh, it’s not very high, but it’s decent** and I’m forcing myself to, within the next 24 months, to research better options. And setting this aside first also allows me to put my energy into the harder task of finding where to invest in equities.
More work will need to be done, but I figure this is a start and I was able to complete it fairly quickly. The next five days, I’ll be packing and wrapping up some work projects, so I won’t have much more time for this before I head down south for my vacation. Anything else will have to be handled when I come back to work in May.
Now off to make some Red Lobster cheddar biscuits for a dinner party tonight!*** These are definitely not vegan, but they are delish!!
*A cloud-connected microwavable notebook from Kickstarter.
**Taking a quick look at GIC options through Bank of Montreal, there’s nothing that matches Tangerine’s 2-year term.
***Costco sells these in packs of 4.