It's that time of year again, the RRSP season. So how about 5 tips to Supercharge your RRSP Savings account for 2012.

Tip # 1.
Put your savings program on a systematic monthly withdrawal. If you invest every month into an RRSP you will win through the laws of averages. This means that you will buy more units of the Investment when the price is low, and less units of the Investment when the prices are high. Historically over the last 50 years, this has been the best way to get better than average return than making one lump sum deposit once in the year.

Tip # 2.
Contribute to your Spouse's RRSP as well. It is one of the area's we see a couple lacking in. If a Husband and Wife want to make contributions into an RRSP, it should be done with some sense of equality. Even if one of the partners in the relationship does not work, they can still have an RRSP, but it would be a spousal RRSP. That way both can accumulate RRSP assets in their own name. And the tax credit is still given to the working spouse, for tax purposes.

Tip # 3.
Combine your many RRSP accounts into one. Throughout life people tend to have a few RRSP Accounts out in the financial world. Sometimes you have an RRSP account with an old employers group RRSP, and one at one Bank, and another at another Bank. By combining all of your assets into one nice and neat RRSP account, you will be able to save on fees and truly keep your eyes on your RRSP account balance. If you have a bunch of scattered accounts, chances are you are not managing them properly and consistently.

Tip # 4.
Whatever you do not use today, will accumulate for your future. One of the great features and benefits of an RRSP structured savings account, is that if you do not use all of your RRSP room this year, it will carry forward to next year. Currently the maximum amount you can contribute to your RRSP for the 2011 Tax Year is 18% of your income, up to a maximum of $22,450. But if you only have the means to contribute $10,000 this year, the unused $12,450 will carry forward to future tax years. That way if you receive a large lump sum of cash in the future you would like to use for your retirement, you can deposit more than the maximum because of the carry forward. This works well for inheritances and unexpected bonuses.

Tip # 5.
Be conservative with your money... In these dire times of financial instability, it is more true than ever to have a proper investment mix, that matches your comfort level and timeline for investing. A good mix of Bonds, Equities and Smaller Companies have allowed our clients to retain their principle in these very difficult and turbulent times in the market. We also work with Guaranteed Products who give a Guaranteed return of 5% or the Market value, whichever is greater. This allows you to sleep at night, when the markets are in a downturn, yet participate in the success when the markets are going up.

By using these simple tips, you should be on your way to understanding how to best maximize your RRSP portfolio, and protect it from market volatility whenever possible. There are many more ways we can help you maximize the value of your RRSP in retirement, such as leveraging, RRSP Loans and Aggressive Portfolio strategies. Simply call our office today to get a head start on the RRSP season, and the stability of your Financial Future.

Steffen deGraaf