As we begin 2003, we are about to experience a “Made in Canada” phenomena, Canada’s fifth season, the “RRSP season.” Expect to be bombarded for the first sixty days with advertising and media blitzes promoting the virtues of saving money for a comfortable retirement.

The RRSP season forces people to focus on their savings and investment options. As interest rates declined during the 1990s, many Canadians experienced “sticker shock” as they witnessed dwindling interest rates on their renewing Guaranteed Investment Certificates. In a quest for higher returns people abandoned the security of a guarantee and took the plunge to invest in mutual funds, many for the first time.

Some of these same people are now selling their mutual funds and rushing back to the comfort of guaranteed investments. It is not that interest rates are higher now, quite the contrary, rates are approaching forty year lows. It is the security of a guarantee that seems paramount in their mind.

Before you make a hasty decision to sell your mutual funds, maybe you should consult with an independent financial planner first. A planner can often clarify your position and shed light on the merits of staying the course. This is the value of independent advice. A planner will tell you whether the guaranteed investment will allow you to achieve your goals, or guarantee that you don’t.

An independent financial planner will identify your goals and risk tolerance, then recommend a personalized plan to meet your needs. The marketplace is then scoured for opportunities to meet your individual situation. Whether looking for investment advice or buying disability insurance, it makes sense to have an unbiased approach.

For this RRSP season, do your homework. Whomever you choose to work with, trust is the most important element in this relationship. Ask friends and family to recommend a planner and then ask potential planners for their qualifications and credentials. Interview your prospective planner to determine your level of personal and professional comfort. It is definitely worth the effort.

This is a monthly article on financial planning. Call or write to Rick Sutherland CLU, CFP, FDS, R.F.P., of Fundex Investments with your topics of interest at 798-2421 or E-mail at rick@invested-interest.ca.