General Questions About Your Investments
Whether markets change a little or a lot, it can be hard not to react. Stock market returns play an important role in the long term investment plans for many Canadians. But along with long term growth potential, investing can also mean investors will be subjected to ups and downs in the short term. These fluctuations have been on full display in recent weeks as markets try to assess the economic impact of COVID-19.
Looking past the headlines
While these developments will have an effect on the global economy, current stock market headlines reported in the media may sometimes be inconsistent with the results experienced by investors with portfolios made up of a diversified mix of different asset classes, including stocks, bonds and cash. When the stock market is weak, it’s common for the bond market to provide stability.
Focus on what you own
Many investors have a diversified portfolio so the performance of a single component like the stock market simply doesn’t provide the full picture. So no matter how the storylines develop, it’s important to remain focused on your personalized investment plan. After all, a well-structured plan offers preparedness to a wide range of outcomes through a portfolio that is best-suited to your long term investment goals.
If you want to review your plan, our advisors are here for you. Simply sign into your RBC Online Banking to book an appointment to speak to us about your specific situation.
You can easily withdraw money from your TFSA through RBC Online Banking. It may take up to 2 business days for the funds to be transferred.
If you have a non-redeemable GIC in your TFSA that has not yet matured, please use our online booking tool to schedule a time to speak with an advisor by phone.
Although you can take money from your RRSP before you retire, it's not recommended because of the negative impact on your retirement plan due to taxes on withdrawals. Withdrawals must be declared as income on your tax return at the end of the year and withholding tax will also be deducted from the amount you withdraw.
If you decide you would like to withdraw from your RRSP, we encourage you to first use our online booking tool to schedule a time to speak with an advisor by phone.
If the money is held in an RRSP Savings Deposit or is available in a Guaranteed Investment Certificate (GIC), we can also process your withdrawal if you send a secure email with the details through the Online Banking Message Centre.
The government requires you to take minimum withdrawals each year from your Registered Retirement Income Funds (RRIFs) and Life Income Funds (LIFs). Due to the current COVID-19 crisis, the government has reduced the required minimum withdrawals by up to 25% for 2020, in an effort to allow investment accounts some time to recover from the current market conditions.
This change will allow seniors to prolong their retirement savings by not redeeming more than they require. This also means they can defer paying tax on funds should they decide to take advantage of the change. For more information, visit the CRA site.
No, you are not obligated to reduce your payments. This is optional for those making withdrawals from their RRIFs/LIFs and is a temporary measure for the 2020 tax year only. Whether you should reduce your minimum RRIF withdrawals depends on your own unique situation. For example, whether you need the extra income for short term expenses.
You can manage pre-authorized contributions to your RRSP, TFSA or other Investment Accounts following these steps:
- Step 1. Sign in to Online Banking.
- Step 2. Choose your Investment Account (for example RRSP or TFSA) and click "Manage Pre-Authorized Contributions" from the left menu.
- Step 3. Select ‘Modify’ to make changes and follow on screen instructions.
Changes to your contributions will take effect two business days in the future.
GICs are one of the safest ways to protect and grow your money. Whether you’re looking for:
- Cashable solutions that provide access to funds at any time
- Short or longer term options
- Guaranteed returns for most GICs* so you don’t have to worry about changes in the markets or the economy
- Currency options so you can protect your Canadian or US dollar savings
Explore our GIC solutions.
* excludes Canadian & Global Market Linked GICs. For Canadian & Global Market linked GICs principal is guaranteed, interest is based on specific market returns
We have a broad range of GICs that can fit any goal. You can use our handy GIC Selector tool to help you determine the best solution for you.
You can also work with an RBC advisor to help you choose the right investment that best fits your objectives. We encourage you to use our online booking tool to schedule a time to speak with an advisor by phone.
Mutual Funds are sold by Royal Mutual Funds Inc. (RMFI). There may be commissions, trailing commissions, management fees and expenses associated with mutual fund investments. Please read the Fund Facts/prospectus before investing. Mutual fund securities are not insured by the Canada Deposit Insurance Corporation. For funds other than money market funds, unit values change frequently. For money market funds, there can be no assurances that a fund will be able to maintain its net asset value per security at a constant amount or that the full amount of your investment in a fund will be returned to you. Past performance may not be repeated. RMFI is licensed as a financial services firm in the province of Quebec.
Financial planning services and investment advice are provided by Royal Mutual Funds Inc. (RMFI). RMFI, RBC Global Asset Management Inc., Royal Bank of Canada, Royal Trust Corporation of Canada and The Royal Trust Company are separate corporate entities which are affiliated. RMFI is licensed as a financial services firm in the province of Quebec.