For many Canadians, an RRSP is a crucial piece in their retirement savings picture. So it is surprising that many people who make regular contributions to their RRSP don’t necessarily understand how much control they have over the actual investments it contains. While it can be daunting to step into the world of self-directed investing, knowing the strengths and weaknesses of your portfolio can help you make smarter choices and earn a greater return on investment.
Most RRSPs contain pre-packaged investments, but it is also possible to open empty RRSPs and fill them with investments of your choice. This allows you to explore the possibilities of self-directed investing in one RRSP while also having a more cautious, professionally managed portfolio in another. So, when it comes to building your own investment package, what should you look for?
Most experts will encourage you to build a balanced portfolio, with a variety of assets that optimize the risk/return trade-off. This means packaging higher-risk assets that can also deliver greater returns with safer, less profitable investments. If you are saving for retirement, you want to make sure the money you’re putting aside will be there when you need it, but you also want to see a reasonable return on investment — which is why investing in silver and gold is one of the best ways to build a strong RRSP.
As hard assets with many real-world applications, silver and gold are an excellent counter-balance to the equities and fixed income securities usually found in professionally managed packages. Silver and gold have intrinsic worth, and regardless of market fluctuations they are guaranteed to be worth something due to their use-value. Organizations like Guildhall Wealth Management that specialize in the investment of precious metals can not only advise you on how to buy, they can also help provide secure storage if you have physical gold and silver assets that need managing.
While gold has long been a favourite for investors who want to guarantee the long-term viability of their portfolio, silver is quickly catching up due to its many industrial applications in electronics and energy. Silver is also set to increase in value due to falling production rates. 2016 saw the first drop in silver production worldwide in fourteen years, and with the growing need for silver driven by developments in high tech and a growing demand for solar energy panels (of which silver is an essential component), experts are predicting an increasingly bullish market in 2018.
For many Canadians, an RRSP is a guarantee that when the day comes to retire, they can look forward to a long and enjoyable rest after a productive working life. An RRSP is more than an investment; it is a way of ensuring peace of mind. This is why it is important that that investment bear as much fruit as possible, as safely as possible. Silver and gold are one of the best ways to make sure your RRSP remains secure, regardless of what happens in the market.