Time to develop a financial plan, move "parked" money, and prepare for
that tax refund
TORONTO, March 23 /CNW/ -
Canadians likely 'parked' millions of dollars in low-return investments
again this RSP season in order to make that last minute contribution. Much of
those investments will sit idle, earning less than optimum returns, because
"parkers" have too many other pressing priorities to deal with, they don't
know where to invest or they've simply forgotten about the investments.
It's a costly mistake many Canadians make, despite their best intentions.
Making an RSP contribution is a good start towards saving for retirement, but
it's not enough. Just because the official RSP season may be over, this
doesn't mean Canadians should stop thinking about their investments. In fact,
the first thing they should do is visit a financial planner, available at no
cost at local bank branches, and develop a financial plan.
With the demise of defined benefit pension plans and life expectancy
increasing, Canadians without a long-term, comprehensive financial plan are at
risk of not having an adequately-funded retirement.
According to a recent BMO survey, 34 per cent of Canadian baby boomers
admit that they do not have a financial plan. More than half of boomers don't
have a written financial plan and 21 per cent indicate that their plans are
"in their head". While the majority of boomers polled (70 per cent) have RSPs,
close to half consider their RSP to be their financial plan. Alarmingly, when
it comes to retirement planning, 22 per cent said they are "hoping for the
It's important for all Canadians to develop a financial plan to help
ensure any investments they make are in line with their objectives and goals.
This will also help them avoid the long-term parked money scenario.
BMO Financial Group has national and local financial planning experts
available to offer commentary and advice on:
- What is parked money and what to do with it
- How to make the most of your RSP contributions and avoid the last
- How to review your portfolio to ensure you appropriately invested your
- Developing a financial plan - it's easier than you think
- Where to go for free financial advice
- How to maximize your tax refund
For further information:
For further information: JoAnne Hayes, Toronto, firstname.lastname@example.org,
(416) 867-3996; Lucie Gosselin, Montreal, email@example.com, (514)
877-1101; Laurie Grant, Vancouver, firstname.lastname@example.org, (604) 665-7596;