Investing

Best way to invest Locked-in RSP funds?

  • Last Updated:
  • May 14th, 2019 10:43 pm
[OP]
Jr. Member
Nov 16, 2008
124 posts
4 upvotes
Brampton

Best way to invest Locked-in RSP funds?

I have a Locked-in RSP (LIRA) account with approximately 25K. I can't contribute or withdraw any funds in this account until I retire. I am looking for guidance on the best way to invest the funds in this account.

Since I can't touch the funds, I can invest and not have to worry about it for the next 25-30 years. I was originally thinking about investing in the following:

Vanguard FTSE Canada All Cap Index (VCN)
Vanguard S&P 500 Index (VFV)
Vanguard FTSE Developed All Cap ex North America Index (VIU) (Or hold both VA and VE)

1) Should I invest all the funds or hold back some cash to invest down the road?

2) Am I better off holding VIU or instead VA and VE?

3) Any other recommendations/feedback welcome

Thanks in advance.
6 replies
Deal Addict
May 17, 2012
2513 posts
1337 upvotes
ontario
How are you investing your rrsp? A lira is no different other than the restrictions you mentioned above.
Sr. Member
Feb 4, 2017
820 posts
609 upvotes
Toronto
I was in the same situation as you on May 3. I received a lump sum from my previous company's pension and put it into a LIRA. I put all all of it into VGRO. Don't have to think about it until I retire 25 or so years from now.
Jr. Member
Dec 15, 2005
132 posts
25 upvotes
Toronto
I would go with Mackenzie F5/F8/T6/T8 funds. Monthly distribution at 0.6** per security/share and captial gains per years redistribution

If you want to leave your LIRA with $25k compounding at 8% annually for;
- 25 years would give you $171,211.88
- 30 years would give you $251,566.42

not including the value of portfolio in growth
[OP]
Jr. Member
Nov 16, 2008
124 posts
4 upvotes
Brampton
esoxhntr wrote: How are you investing your rrsp? A lira is no different other than the restrictions you mentioned above.
It's currently handled by my current employer's pension plan. They are using an asset allocation fund from Manulife.

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