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Top Tips from Gordon Pape
Financial Advice from Canada's Most Trusted Expert

It's everyone's favourite time of year—RRSP season.

We all dread it...the paperwork, the uncertainty, the momentous decisions that have to be made. But this year, instead of fretting over your personal finances, why don't you do something positive?

Turn to Canada's most trusted expert for advice that will make a world of difference in your approach—and attitude—toward your investments. Simply scroll down for some invaluable advice from Gordon Pape, and read more about his bestselling books from Viking Canada.

Gordon Pape

One of Canada's best respected financial authors and the nation's leading expert on mutual funds, Gordon Pape is the editor and publisher of the Internet Wealth Builder?(IWB) and Mutual Funds Update. His bestselling books include?the annual Gordon Pape Guides to Mutual Funds and RRSPs, The Complete Guide to RRIFs and LIFS, 6 Steps to $1 Million and Retiring Wealthy in the 21st Century. He is a columnist for Fifty-Plus magazine and is a frequent guest on radio and television programs across Canada.

Penguin Online:

How can people build a winning RRSP portfolio during tough times like these, with interest rates so low and stock markets in turmoil?

Gordon Pape:

1. Create a long-term plan before you invest, and stick to it. The greatest mistake investors make is to react in a knee-jerk manner to the news of the day. If you have a sound strategy, it will pay off over time.
2. Diversify. Don't overload your RRSP with stocks or equity funds. A mix of stocks and bonds will greatly reduce risk, and will generate very good long-term results. For balanced investors, I recommend 40% bonds or bond funds, 50% stocks or equity funds, and the remaining 10% in cash.
3. Don't reach for the moon. Trying to achieve spectacular returns often ends in disaster. Look at the people who went heavily into technology stocks or funds in their RRSPs in the late '90s. They have suffered huge losses. Aim for an average annual return of around 8%. That can be achieved with reasonable risk and will allow you to build a very sizeable sum of money for your retirement years.