In this uncertain financial climate, many Canadians are anxious about their investments. After saving for decades to ensure a comfortable retirement, fears that another stock market crash, or a recession brought on by growing political instability, will jeopardize the wealth they’ve accumulated. So what are some of the best ways to make your retirement savings recession proof, and how can you guarantee that the money you are putting aside now will continue to grow in the years to come? Here are a few tips that can help you get the most out of your retirement investments.
Registered Retirement Savings Plans (RRSPs) are the bedrock of most Canadian retirement savings. Because RRSPs are tax-deductible contributions and are tax-sheltered until you choose to withdraw them, they are a great way to lower your taxable income during your prime earning years — and because you can hold a variety of different investments in your RRSPs, opening more than one can be a great way to store different kinds of wealth. RRSPs can consist of cash, savings bonds, and ETFs, as well as hard assets like bullion.
If you want to invest in gold or silver for your RRSP there are a few things you need to know. Under Canadian law, you cannot store bullion in an RRSP, so the best way to get the most out of investments in gold and silver is to purchase physical holdings of investment grade gold and silver bars and coins. Investment grade means that gold is 99.5% pure, and silver is 99.9%. All coins must also be legal tender and produced by the Royal Canadian Mint.
While gold and silver can really help your portfolio remain strong in the long run, because RRSPs require particular kinds of gold and silver products, when buying it is best to go through a precious metals dealer that understands the market and can help you find the right kinds of gold and silver and set up a registered precious metals account to ensure that your gold and silver investments are doing as much as possible for your investment portfolio.
No matter how careful you are about investing, parts of your portfolio are likely to see fluctuations in line with the broader market. If you are saving long term and have invested in good commodities, most of these fluctuations will not have a major impact on the outcome of your investments. So don’t panic if you see your assets taking a slight dip.
Saving for retirement is one of the most important long-term investments most North Americans will make, which is why it is important to make sure that your investment portfolio is as balanced and diverse as possible. One of the best ways to build resilience and long-term growth is by using a range of different types of RRSP investments, from pre-packaged stock assets to hard assets and bullion. With a diverse portfolio bolstered with commodities that are guaranteed to offer long-term value, you can rest safe in the knowledge that when it comes time to cash in your retirement savings, they will be there for you.