I’ve revamped my RRSP strategy several times over the last few years but now the goal is crystal clear:  Use up all of my unused RRSP contribution room within two years and then contribute enough each year to max out my RRSP going forward.

Contributing to a defined benefit plan at work means I receive a pension adjustment, which reduces the amount I can contribute to an RRSP to about $3,000 per year.  But after 10 years working in the private sector I had nearly $50,000 in unused contribution room.

Related: My RRSP Update From 2013

A $20,000 RRSP loan, plus another $6,000 in regular contributions last year whittled away most of my unused contribution room.  Now the unused room is down to about $10,000 – within striking distance for the next 12-24 months.

This year’s increased contributions led to a lot of purchases within my RRSP account.  Here’s what I’ve done with my cash over the last 12 months.

  • Bought 70 shares of Canadian Oil Sands in May, 2013
  • Bought 125 shares of Rocky Mountain Dealerships in June and 150 shares in August, 2013
  • Bought 50 shares of Potash Corp. in November and 50 shares in December, 2013
  • Bought 140 shares of Liquor Stores in December, 2013
  • Bought 300 shares of Bird Construction in December, 2013
  • Bought 100 shares of Emera in December, 2013
  • Bought 100 shares of RioCan in December, 2013
  • Bought 40 shares of Agrium in December, 2013
  • Bought 100 shares of Canadian Natural Resources in December, 2013
  • Bought 125 shares of Rogers Sugar in January, 2014
  • Bought 100 shares of Dorel Industries in March, 2014
  • Bought 100 shares of Suncor in March, 2014

I like to buy shares in blue-chip companies that increase their dividends on a regular basis.  I believe these types of companies will deliver the highest returns over a long period of time.

RRSP Portfolio

Here’s a look at my RRSP portfolio as of March 14th, 2014:

Symbol Shares Book Market Dividend/Share
AGU 40 $3,825 $4,152 3.20
BMO 90 $5,036 $6,478 3.04
BNS 45 $1,919 $2,896 2.56
BCE 80 $1,962 $3,747 2.47
BDT 300 $3,721 $4,056 0.76
CM 32 $1,929 $3,026 3.92
CNQ 100 $3,440 $3,965 0.90
COS 210 $4,275 $4,473 1.40
DII.B 100 $3,710 $3,710 1.32
EMA 100 $2,988 $3,348 1.45
EMP 60 $3,544 $3,948 1.04
FTS 100 $2,928 $3,127 1.28
GWO 150 $3,949 $4,530 1.23
LIQ 300 $3,823 $3,435 1.08
POT 100 $3,365 $3,765 1.49
REI.UN 230 $4,011 $6,086 1.41
RME 275 $3,511 $3,165 0.40
RSI 575 $3,396 $2,576 0.36
SNC 100 $3,939 $4,630 0.96
SJR.B 100 $2,038 $2,573 1.02
SU 100 $3,643 $3,621 0.92
T 170 $2,698 $6,559 1.44
TRP 60 $2,274 $2,963 1.92
CASH $1,649 $1,649
Total $77,574 $92,478

This portfolio currently spins off $3,868 in dividends each year, and the dividend increases for many of these companies have come in fast and furious over the last 12 months.  Unfortunately, a rough year for companies like Rogers Sugar and Liquor Stores could put their dividend in jeopardy.

Related:  The Pitfalls Of Chasing High Yield Stocks

RRSP plan moving forward

My original plan was to contribute $6,000 to my RRSP last year and $12,000 this year.  But since I took out a $20,000 RRSP loan to top-up my contributions last year, it meant I’d have zero contributions this year as I paid back the loan.  That’s okay because $26,000 > $18,000.

I’ll take a look at this at the end of the year and determine whether another RRSP loan makes sense to finish off the remainder of my unused contribution room.  I figure that I’ll catch up within the next year or two and then I can shift focus toward maxing out our tax free savings accounts.

In the meantime my RRSP portfolio will continue to grow.  Starting at today’s value of $92,000, and factoring in contributions of $3,000 per year at an eight percent annual rate of return, this portfolio will grow to $566,000 by the time I’m 55 and reach $849,000 when I’m 60 years old.

RelatedRRSP Over-Contribution Rules

The goal is to fill up three buckets of income – my pension, RRSP, and TFSA – that will give me the option to retire comfortably at an early age.


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