What criteria is important when choosing an institution for an RRSP?

Question

Im looking to start an RRSP but so many places are offering different ones. I'm not sure how/who to choose and whether to have more than one RRSP at different institutions, or to have all my investments in just one. Any thoughts?

Additional Details

This question pertains to retirement investing in Canada

Answer 1

Best Answer - Chosen by Voters

Well it depends what kind of RRSP are you looking for:
- mutual fund
- direct investing (stocks)

For funds you're looking for a combination of performance and management fees. Also pick the bank that will allow you to buy the funds you want if you're looking solely at bank mutuals. TD has the efunds which have the lowest MER in Canada (0.5%) which are available solely through a TD efunds RRSP.

For direct investing, there is often a $50-$125 annual admin fee. My bank waived mine because I have my mortgage with them.

The CIPF protection is currently $100k per account. So I would be wary of placing more than this limit in one institution.

I have 3 RRSPs at three different institutions. All for different reasons:
#1 ) RRSP for my employers group RRSP plan
#2 ) RRSP direct investing at my bank
#3 ) RRSP directly with a fund company for access to their funds.

Answer 2

past performance is the obvious

Answer 3

Very easy question. The institution is absolutely irrelevant. You can pick any of the top 20 firms and there is no guarantee any of them are more or less secure. ie. Bear Stearns, Citigroup, or that you would have any better experience at any given one.

What really matters is the quality of the advice you get. That quality advisor could be at any one of these places. Ask people in your inner circle whose opinion you trust and that you know for certain are financially successful. (don't just base it on the car they drive) They may be able to refer you to a great advisor who can guide you on your lifelong journey to financial freedom.