Let’s say that you have decided that making a RRSP contribution makes sense for you. You are ready to contribute but you are not sure how you should invest your money. What do you do? It is very important that you don’t buy some mutual fund just because you want to beat the deadline.

It is possible that you have accounts with many different institutions and a motley collection of mutual funds. It is going to take a while to sort out where you stand. Maybe you are going to make your first contribution and you wisely want to take your time to research your investments. Perhaps you aren’t sure how you want to invest your contributions and are feeling pressured to make a choice.

If you want to take your time, consider parking your contribution in cash in a high-interest savings account. After carefully considering your options, you can transfer the money into another RRSP account at a later date. Usually there are no fees involved and the money will earn a decent interest until you decide what to do with it.