Choose your options

Keep in mind that an RRSP is not an investment in and of itself; it's simply a special type of savings plan. So you'll need to select the specific investments to hold within it. Here you have many options.

"Within your RRSP, you might hold savings deposits, mutual funds, stocks, bonds or any number of other investments," says Mandy Dhinsa, an RBC Royal Bank branch manager in Brampton.

"The type of investments you choose will depend on your retirement goals and your investor profile. This is where a financial advisor can help. They will also help you build a plan according to your unique goals and circumstances as a newcomer to Canada."

RBC Royal Bank branch manager in Mississauga Shekher Puri adds: "An advisor will look at three things in building your investor profile: the time horizon of the investment, your risk tolerance and your main objectives.

"If money is being invested for a longer time frame, with the objective of funding your retirement down the road, you may want to go into options that are a little riskier like mutual funds. They may go through ups and down, but in the long term do well. But for a shorter time frame, or if you were the type who can't stomach market fluctuations, you'd be better off putting your money into something more stable and less volatile."

Get help

With the February 29 deadline for making RRSP contributions for the 2007 tax year fast approaching, you may be thinking of investing for the first time, but still have some questions about where and how best to do so.

While family, friends and even neighbours may be happy to provide you with their own investment ideas and recommendations, it's wiser to seek the advice of a qualified financial advisor who is backed by a reputable financial institution.

"Adjusting to new tax laws and investing in uniquely Canadian savings vehicles such as an RRSP can be worrying, even overwhelming for many new Canadians," says Dhinsa. "But an experienced financial advisor can provide you with answers to your retirement questions and show you how an RRSP can help you obtain your retirement goals."

For more information on choosing a financial advisor, see the online version of this RRSP Special Report at canadianimmigrant.ca.