Retirement Savings Contributions Continue Past RRSP Deadline with TFSAs and BMO SmartFolio
While the RRSP contribution deadline has passed, Canadians can continue .to utilize Tax Free Savings Accounts (TFSA) to save for the future. According to BMO’s ninth RRSP and TFSA survey, half of Canadians invest in a TFSA to save for retirement, followed by 39 per cent leveraging the savings vehicle as an emergency fund
Canadians considering a TFSA for both long-term and short-term financial goals can maximize their retirement savings potential through BMO SmartFolio. Assessing the investor’s financial goals and aversion to risk, BMO SmartFolio matches them with an ETF (Exchange Traded Fund) portfolio and adjusts holdings to take advantage of market movements.
“Digital investing challenges notions that investing should be reserved for specific seasons or for the tech-savvy. Whether it is purchasing your first home or retiring comfortably, everyone has financial goals regardless of age, lifestyle or digital investment knowledge,” said Silvio Stroescu, President, BMO InvestorLine. “Since there is no age limit to contribute and no penalties for account withdrawals, you can watch your investments be professionally managed and grow, tax-free, with a BMO SmartFolio TFSA account.”
While Canadians continue to plan for retirement amidst market volatility, those surveyed consider themselves “cautious” investors, preferring the “play it safe” label. Canadians are not confident in their investing know-how, with 42 per cent surveyed identifying themselves as “not knowledgeable”, and 29 per cent labelling themselves as “newbie” investors.
“No two investors are alike, each with a personal set of goals, routines and lifestyles and levels of investment confidence and aversion to risk,” said Mr. Stroescu. “For those too busy to manage their own investments but still want to be involved in the process, BMO SmartFolio’s mobile access to portfolio performance and alerts, educational resources and professional support by phone and online empower TFSA account holders to learn and understand the progress of their investments at their convenience.”
Mobile alerts and access to account balances, holdings, portfolio performance and professional support by phone or online continues to be a priority. The survey reports 88 per cent of Canadians believe banks should provide alerts when those are at risk for over-contributing, and 72 per cent expect financial advisors to track yearly contributions and withdrawals.
Invest Online, Not Alone
BMO SmartFolio’s team of expert Portfolio Managers and Chartered Financial Analysts make investment decisions that align to a client’s investment objectives and risk tolerance. Clients are matched to one of five model ETF portfolios that best suit their needs. The model portfolios are monitored and rebalanced when required to help keep clients on track with their investment objectives. To learn more about BMO SmartFolio, please visit www.bmo.com/smartfolio.
The Ninth Annual BMO RRSP Survey was conducted by Pollara Strategic Insights via an online survey between November 30 and December 5, 2018, with an online sample of 1,518 adult Canadians. Data has been weighted using the latest census information to be representative in terms of age, gender and region. The margin of error for a probability sample size of 1,518 is ± 2.5% 19 times out of 20.
For more information on saving for retirement, visit www.bmo.com/investwithbmo
SOURCE BMO Financial Group