Opinion on work RRSP Fund

  • Last Updated:
  • Jun 23rd, 2018 1:15 pm
Apr 3, 2015
242 posts
Toronto, ON

Opinion on work RRSP Fund

So at my new job I have the option of putting up to 3% of my total pay into a Manulife RRSP fund and they will match it. Seems like free money so i decided to do the 3%. There are two funds that I am interested in and I would like to hear all of your opinions on them. TBH im ok with taking a risk right now since the principal is small so which would you prefer. I have linked the summary of each fund below.

Option A
Option B
3 replies
Deal Addict
May 17, 2012
3196 posts
A has Canada, B doesn't (very small position). I'd pick A.
Deal Fanatic
User avatar
May 11, 2014
6575 posts
Rankin Inlet, NU
They both seem like decent funds with good diversification. I would be good with splitting 50-50 on the two funds. Some posters here will likely disagree, but I would want some domestic exposure. Splitting 50-50 will give you around 20% Canadian with the rest in foreign. I would ask about management fees. I can see there are expenses but to me it isn't very clear what they are charging. In a case where you are receiving a company match, you most definitely need to take advantage as you are effectively getting 100% return right off the bat.

When investing in a company plan, I would ask...

-What vesting period is there? Say you have the ability to transfer funds to your own RRSP, you might require to have the invested funds in for a minimum amount of time otherwise the company will clawback the match. Knowing this will allow you to transfer should it be necessary (eg. accessing Home Buyer's or Life Long Learning Plans, wanting to invest your own funds).
-Ask what fees are involved. Know how much management costs are so you are aware the costs of your investments. Many company plans are sold with lower fees so in general it is fine to stick with the plan, but you should still be aware. Also, if you have an RRSP outside of your work plan, if the plan at work is decent, you may want to transfer your other RRSPs into it too.

It would also be good to know what other plans they offer. Without knowing the other plans, it is harder for us here on the board to make comparisons to what plans you have available.
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