Self Directed RRSP

What is a self directed RRSP?

A self-directed RRSP allows you to invest in qualified investments. These include publicly traded stocks, bonds, GICs, Exempt Market shares, MIC (Mortgage Investment Corporation) shares and mortgages. You are responsible for making all investment decisions. Wow, control over where your investment is going, your returns, your security! Almost sounds too good to be true. It’s not, I personally lend money through my self-directed RRSP on private mortgages. I know nothing is guaranteed, however, I like being able to pick and choose who, and what property I lend on.

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The next section is from the #1 Best Investing Website from Canadian Real Estate Wealth Magazine for 2 years in a row:

Your RRSP in and of itself is NOT an investment.

It is a special type of account that can hold funds in it and the funds in it are tax deferred (thus, you can write-off your contributions to it and the returns are not taxable either – UNTIL you begin withdrawing the funds).

But, and this is very important, the RRSP is not an investment. The GIC’s, Mutual Funds, Stocks, Bonds, Mortgages (yes, you can invest in a mortgage through you RRSP account) are the investment.

I want to inform Canadians (and even our US counterparts with their IRA accounts) that they need to educate themselves and take more control of their money. If you do not know, unequivocally, what investments you have within your RRSP (or RESP, LIRA, RRIF, etc.), and what is their NET RETURN to you, then you need to take a good hard look.

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Transferring Your RRSPs to a Self Directed RRSP account is a simple process and you may pay a very small processing fee, however your return on investment will warrant the $100 or so fee.

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