RRSP Rate

There is many different rrsp rates on the market. The best way to come up with an rrsp rate that will suite your needs is to do a financial analysis along with a risk assessment. This way you will know how much money you will need in your rrsp when you retire. And then you can based on the rrsp rate and your tolerance for risk come up with a common ground for both.

You can get a safe rrsp rate from the bank for only 2%. The problem with an rrsp rate that is lower then the rate of inflation is you lose money over time. Not real money, but if your rrsp rate is lower then the rate of inflation you lose something called buying power. So, if your rrsp rate of only 2% and inflation is 4% then over the years you will have lost a lot of buying power. If the rrsp rate is too high or in a market that can fluctuate too much then you are taking on a lot more risk. You need a happy medium for your rrsp rate. Many people go for a higher rrsp rate of 40%, but one good friend of mine ended up losing a large chunk of his rrsp because he was in a high risk type of rrsp investment. Two options that I know of that can give you a good rrsp rate and have the security of land or real estate is using a self directed rrsp mortgage to finance a real estate investment, or another company that gets you a nice rrsp rate in land development. Both are worth checking into if you would like to increase your rrsp rate.