RRSP'S(Canadian)....Should I make a change?

[canadianbeaver]

Wondering if I should cash in my RRSP ? All the talk about recession in the States is making me wonder about them...any suggestions would be great. Thanks

[daleo]

1. Well, they say you shouldn't join a stampede

But that's not always easy advice to take. I think it depends a lot on your time frame. The next year or two might be grim, but it ought to get better after that. It's anyone's guess though.

[CHIMO]

2. Not An Expert

But without knowing your investments one would have a hard time to make a comment.

However, let me try.

You can control your RRSP if you have a self directed plan. If the plan is not self directed it can be changed over to one if it is kept within the RRSP umbrella.

You can then choose, depending upon who your plan is with to make your own investment decisions.

For instance you can choose to invest in i-funds or you may choose to jut invest in GIC's.

If one were young I wouldn't cash my plan in.

Hope this might help.

[JBoy]

3. Depends on what you're invested in, and if you need the money

If you "cash it in", i.e, remove the money from the RRSP, it will be taxed as income. You can transfer it to something else (e.g, from a mutual fund to a GIC) within the RRSP without it getting taxed.

My advice - if you don't need the money now, and won't need it for 5 years or more, leave it alone. You should be reassessing what's in your portfolio on a regular basis, from the point of view of diversification and overall risk level. Your RRSP should be a long-term venture, and you'll go through more than one economic cycle before retirement. Myself, this is the 3rd major market correction I've experienced (1987, 2000, and now).