What happen after you've been contributing RRSP for years and then the market crush when you need it the most?

Question

Many people contribute to their RRSP for retirement. Years after years they contribute and even take take loans to max their contribution. When it is time to withdraw or turn your RRSP to RRIF and the market crush and your holding loss a very significantly value or you could be holding worthless paper value. This can happen What then? Are there any better ways to save for your retirement other than RRSP?

Answer 1

I am assuming an RRSP is like a 401k??

Enron changed the whole world looked at retirement and to the people who lost their money it sucks. But they shouldn't have been that risky in the first place. They lost their money because they were invested in mostly company stock. That is wayyyy to risky. Everyone who had invested in outside funds rather than Enron stock still had their retirement. Most people did not know this and now are to afraid to invest which is a shame. There is money to be made out their in retirement mutual funds held within a 401k.

One way to watch out for losses in your retirement fund is to get more conservative as retirement looms. You should start reallocating your retirement to bond and money market mutual funds starting at about 7 years till retirement. So if there is market drops when your getting to retirement you put your investments in conservative funds and you look the smarter when people have to work till 75.

Answer 2

You must be Canadian... thats the only time i hear RRSP :)

RRSP just like any other retirement funds are a gamble and depending on what you invested in...it could really hurt you...look at Enron & worldcom... those people lost everything.

You have it so much better than us Americans... you have the member account, member voluntary account and spousal account for your RRSP...

we only get one account to put away in... you should consider yourself very fortunate

Answer 3

definite, its a small weigh down now in comparison to what it grew to become into formerly. i like him yet i want human beings. reason: he has an on-off lady chum and that i do no longer likely want something to take place besides. we communicate each now and then.