Two questions to consider as we head into another RRSP season:
Do you have any control over the stock market?
Do you have any control over the tax rate?
You probably answered NO to both questions.
Many people have most of their retirement money in mutual funds which are invested in the stock market and over which they have no control.
Many people have most of their retirement money registered as an RRSP and they have no control over what the tax rate will be when they go to withdraw that money.
In other words, people are entrusting their future into the hands of two entities over which they have no control – namely the market and the tax collector.
Does it make sense to have most of your money structured this way?
Should you have to carry all the risk?
There are alternatives to grow your money in a safe, predictable and tax-free environment in which you have total control.
Something to think about as we head into another RRSP season.