Retirement Savings Options

[angelas]

In light of recent events in my family I'm looking into options for when I retire. With 30+ years to go until I retire its the best possible time for me to get serious about it. I've been saving here & there in RRSPs over the years but it's never been my number one priority even knowing there would be no Canada Pension Plan when I retire. (I think its good policy for anyone to assume the only money you'll have in retirement is the money you save yourself, never assume anyone is saving for you).

I have a three RRSPs totalling a few thousand dollars. Their interest rates vary between .25-2.88%. With my dad's experience lately with his RRSPs its become plainly obvious that they are worthless. (When he cashes out the bank fees are 30% of the balance before taxes are paid on it, despite not having made anywhere near that much in interest). I stopped depositing into them last year to focus on saving up for a down payment.

I also have a tax-free savings account earning 2% interest. There is a limit on how much can be put in it each year. I'm using this one to save up a down payment for a house as it is locked in for 3 years & I do an auto deposit each payday for this one. When it "matures" it will be locked in again for another 3 year term as I continue to contribute to it. I'm keeping this one for as long as I can to use for a "short" term savings goal account such as saving up for the down payments on a house (first) or a car/renos after buying a house as I cannot access funds in it at all until a set time.

Lastly, I have a regular savings account earning .15% interest. It is my emergency/moving fund. It's with this money that I want to maximize my savings. I'd like to earn more interest than I pay in bank fees, as I'm sure everyone does.

I'm shy of high-risk investment savings and the like since another family member's retirement was all but wiped out. I also want to keep the money mostly accessible (not by debit card, but available in case of emergency).

I know I'm being picky and I want it all. Low risk (or guaranteed principle), high interest (ok, 2% isn't really high but its the most I've seen offered), accessible in a pinch.

I keep seeing ads for ING Direct. I don't know anyone personally who's used them. Their Investment Savings Account offers 1.5%. Has anyone here used ING? If so, how good are they? Easy to deal with?

Anyone have any other options for retirement savings?

[Bigdogsolo]

Everyone may have an opinion, but I would recommend you get a referral from someone you trust to a Financial professional they have used. THen....do your homework!

[jocoyn]

Yes, 30 years gives you time to take some risk. I imagine we are going to see runaway inflation soon enough so interest bearing anything is going to be a joke.

I think a financial advisor is a good idea or even getting Money Magazine or Kiplingers and starting to read it (I read in one of those magazines if you have more t han 100K saved up you should probably be working with an advisor.

Also take advantage of tax-deffered saving such as 401(k) or even a Roth (which you pay taxes up front but not later when you need the money)

I think most people who took the hardest hits during the crash were not necessarily adjusting their investments to leverage the risk associated with their time until retirement. My 403(b) took a major hit. My fathers stuff was not hit too hard.

OF course, I see you are in Canada so the tax structure, retirement options etc may be ENTIRELY different for you so advice from someone in the states may be completely irrelevant.

[BlackPuppy]

I put my money in low fee, indexed stock market mutual funds. The stock market will always outpace in inflation.