How to make an RRSP contribution – without making an appointment

Some investors have busy lives. Time is a precious commodity and time is sometimes something that they just don’t have.

First of all, you really should be seeing your advisor, especially for your regular financial checkups. If you can make the time to see the dentist or the family doctor, you should be able to make the time to see your advisor.

However, if you just can’t make it into your advisor’s office – no way, no how and the RRSP deadline is looming just around the corner; here are a few ways you can make an RRSP contribution from your home or office.

  1. Call your advisor and say you can’t come in but you would like to add $5,000 to your RRSP before the March RRSP deadline. You and your advisor can discuss which fund to buy or add to. Provided there is still enough time for the mails, all you have to do is to make out a cheque payable to the advisor’s dealer, i.e. ABC Investment Firm Ltd. Enclose a note that says: Please add $5,000 to my XYZ mutual fund. Sign and date the note and mail it off to the advisor’s office. Before the deadline is due, call the advisor’s office to make sure your cheque has safely arrived or better yet, your note might request a call or email confirming receipt of your contribution cheque.
  2. Set up a new nominee account. These types of accounts are the most convenient of all but they do charge a yearly fee for all of the advantages and convenience these accounts provide. For instance, you may be able to make your contribution online, view your accounts online and can verify that your contribution went though. Generally, no signatures are needed for purchases, switches, contributions or redemptions. Withdrawing cash from an RRSP does require a signature.
  3. If you have a client name account, you can arrange with your advisor to setup an LTA (Limited Trading Authorization) which means that you relay instructions to your advisor by phone or by email. Setting up an LTA form (no cost for this) will also eliminate many of the client signatures that are normally required.
  4. Avoid the mad rush to meet RRSP deadlines by making your RRSP contributions automatically from your bank account. Your advisor can set up a PAC (Pre-Authorized Chequing) plan so that your RRSP contributions are made monthly right from your bank account to your RRSP account.

Don’t forget that advisers must send you a Fund Facts document for the fund you are considering buying or adding to. Both you and your adviser have to ensure that the mutual fund being considered is suitable and appropriate for your situation.. So don’t just send in a cheque!



Joomla Template: by JoomlaShack