Do you receive RSP statements from multiple companies?  All of this information streaming in can be overwhelming, especially when added to the barrage of RSP advertising that inundates us every February. Perhaps it is time this year to do a little financial housekeeping. Like never before, it is imperative to see exactly what you have in your RSP accounts, how they are performing, and what fees you are really being charged.

As a starting point, consider consolidating your RSP accounts to reduce some of the needless paperwork in your life. While putting all your eggs in one basket is generally not a good idea, it is also important to make sure the risk of holding your investment at one financial institution is real and worth the extra paperwork. If you have investments spread all over primarily because of deposit insurance concerns, remember that most financial institutions have several subsidiaries that can each cover $100,000 in deposits.

There is no set standard on how much to hold at different financial institutions, but there can be advantages to hold more of your RSPs in one company.  With a larger account you will likely get more attention, better service and lower costs.

It’s easy to transfer from one company to another. Do a little extra analysis this year then decide where it is best for you to hold your investments. Your advisor, banker or broker will handle all the paperwork to make the transfers. (Just make sure you don’t cash out the RSP or there will be tax consequences.)

One of the most important considerations when choosing a home for your RSPs is to go with an advisor who has earned your trust and with whom you have a good working relationship.  In these turbulent times trust is everything. – Karin Mizgala

Karin Mizgala is a Vancouver-based fee-for-service financial planner with an MBA and a degree in psychology. She’s the co-founder of the Women’s Financial Learning Centre.