Anytime you are planning to make new contributions to your Registered Retirement Savings Plan (RRSP), take a few moments to assess your current asset mix.

Is your RRSP portfolio adequately diversified among the three main asset classes: equities, fixed income and cash? Do your current holdings reflect your preferred asset mix? Now may be a good time to rebalance your RRSP portfolio.

Adjusting your asset mix

Over time, as each asset class performs differently, the original asset mix that you established may shift. An easy way to re-establish the right mix of investments in your RRSP is to allocate any new lump sum contributions toward assets that have not performed well this year or to target a higher percentage of your contributions toward those investments.

When you review your current RRSP asset mix, it may also be a good time to reassess your goals and risk tolerance. Perhaps you’ve learned from the experience of living through turbulent markets that your risk tolerance isn’t as high as you had thought. In that case, you may want to establish a new asset mix. If you do so, you should then allocate new RRSP deposits to investments that will help you reach your new targets.

Stay on target

Whether you’re redefining your preferred asset mix or bringing your RRSP portfolio back to the desired balance, make sure your asset mix will provide the growth you need to meet your retirement goals.

An investment professional can help you get your portfolio back into shape quickly. Call Servus at 187SERVUSCU (1.877.378.8728) and make an appointment with one of our wealth advisors.

Servus Wealth Strategies Ltd. is a subsidiary of Servus Credit Union Ltd. offering financial planning, life insurance and investments. The information contained in this article is provided as a general source of information and should not be considered personal tax advice or investment advice.