Home > Retirement: Why Consolidate?

From the desk of Sue Wyseman, CFP
Why consolidating your RRSP portfolio makes sense

You made the RRSP deadline, and now you have your tax deduction. But if you're like many people, you may have left it to the last minute, and made your contribution at the financial institution closest to home. And if you've done this for a few years, you could have RRSP accounts at four or five different institutions, and receive different statements for each - how confusing!

If this sounds familiar, why not consider transferring your RRSPs to your credit union?

It's easy to transfer in - let us take care of you!
Transferring your RRSP accounts to the credit union is simple. We take care of all the paperwork for you, and we'll arrange for the transfer of funds from the other institutions. There are no tax implications; however, the financial institution you're transferring out of may charge a transfer fee.

A full-range of options, expert advice
As a member of the credit union, you are part of a unique financial institution that is committed to helping you reach your retirement objectives. We offer many different investment choices - from RRSP savings accounts to mutual funds - and complimentary financial planning services.

By consolidating your investments in one place, you'll have one advisor managing your portfolio. This will avoid duplication of investments, lead to better diversification of your portfolio, and help to insulate your portfolio against market downturns.

You'll also have the convenience of a single statement summarizing all your investments.

Save money on fees!
Consolidating your RRSPs can also help you save money. When a portfolio is held within a self-directed account, the financial institution charges an annual fee to administer this type of account. Bringing your entire portfolio to the credit union means you can save on multiple fees.

Also, many banks offer in-house, no-load funds. If you wish to purchase funds directly from some of the larger mutual fund companies like Trimark, Fidelity and Mackenzie, you are required to open a self-directed account with the brokerage arm. This can cost you an annual administration fee of $100 to $125.

Through your credit union and Worldsource Financial Management Inc., you have access to over 4,000 mutual funds from these same companies and more. And you are not required to open an account or pay extra fees.

Find out just how easy it can be to consolidate your RRSPs at your credit union, and implement a financial plan that will help you meet your retirement goals. Book your appointment with Sue Wyseman today!

Sue Wyseman is available to provide complimentary financial planning services to all members. Contact her at wyseman@ocscu.com or through member assistance at 416-314-6772 or toll-free at 1-888-516-6664.

The most painless way to contribute to your RRSP? PAC it in today!
A great way to save for your RRSP is to make regular contributions with a RRSP Pre-authorized Chequing Plan (PAC). With this plan, the funds come right out of your chequing account and go straight to your RRSP. You can start with as little as $25 per pay, and the plan can be easily set up just by contacting your credit union.