Should I maintain or reinvest the GICs maturing in my RRSP?
The problem with reinvesting money in a GIC right now, of course, is that we are in the lowest interest rate environment in the history of Canada. That being said, whether you decide to reinvest the money coming due in new GICs, or some alternative investment, really depends on your personal investment objective.
RRSPs are generally long term savings vehicle. You’re saving for your retirement, you have a long time horizon which generally means you can afford to have some volatility in the performance of the underlying investments.
You may want to consider an alternative to GIC, whether it’s stocks, bonds, or perhaps a balanced mutual fund that may help you towards your goal.
Perhaps the best thing to do, is consult with your financial adviser. He or she might be able to look at your entire portfolio, whether your RRSP, your non-registered account and make the best possible recommendation, as to how to achieve your long term financial success.