RRSP Centre

• Self-Directed RRSP
• Deduction Limit
• Spousal RRSP
• Investment Options
• Investment Strategies
• RRSP Loans
• How Much Will I Need to Save?
• RRSP Maturity Options
• Annuities
• RRIFs
• Self-Directed RRIF
• How Much Income Will I Need?
• How Long Will My RRIF Last?
• Naming a Beneficiary
• Retirement Planning for Small Business Owners

RRSP Centre

RRSP Investment Options
For your Registered Retirement Savings Plan (RRSP), Canada Revenue Agency allows you to select from a wide variety of qualified investments. A periodic review of your RRSP investments will ensure that you are taking full advantage of all the investment opportunities available to you in a BMO Nesbitt Burns Self-Directed RRSP.

Strip Bonds
Strip bonds are created by separating the interest coupons from the principal amount (residue) of a bond. Both the coupons and the residue, each representing a payment to be made on a specific future date, are sold at a discount to their maturity value. Unlike conventional bonds and debentures, strip bonds make no interest payments; the return is based on the difference between the discounted purchase price and the maturity value of the strip.

Foreign Investments
Recent changes to the tax rules permit RRSPs full access to qualified foreign investments. Not only stocks, but also the bonds of corporations whose shares trade on a prescribed foreign stock exchange, qualify as foreign investments. In addition, investment grade foreign government bonds also qualify.

Mutual Funds

• Professional money management
• Instant diversification
• Reduced risk
• Convenience
• Simple or sophisticated funds
• Liquidity
• Small or large amounts can be purchased
• Re-investment of income

Non-Qualifying RRSP Investments
Some of the more commonly asked about non-qualifying investments are:

• listed personal property such as antiques, art or gems,
• commodity futures,
• shares of almost all private corporations,
• real estate (however certain mutual funds which invest in commercial real estate do qualify),
• put options

For more information, contact an Investment Advisor at a BMO Nesbitt Burns branch near you.

If you would like a BMO Nesbitt Burns Investment Advisor to contact you, simply complete this brief contact form.

Note: Using borrowed money to finance the purchase of securities involves greater risk than a purchase using cash resources only. If you borrow money to purchase securities, your responsibility to repay the loan and pay interest as required by its terms remains the same even if the value of the securities purchased declines.