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Hi Everyone,

I am new to the realm of investments. Although I have a TFSA, I feel embarrassed for not having opened any pension plan (RPP) or retirement plan (RRSP) in my 2 years of work in Canada.


I have come across ManuLife DC RPP offered to employees at my current company. My organization will match at most 4% of my bi-weekly salary if I contribute into the DC RPP.

Their sales dialog: "A Manulife DC RPP offers lower lnvestment Management Fees (IMFs) compared with individual savings products. As well, Manulife offers access to leading fund managers not generally available to individual investors, plus a diversified fund line-up."

I know the money will be locked-in. So, should I opt for it, or open a personal RRSP?
 

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Company matching 4%.... that's a no-brainer - do it. Actually, if you've been employed 2yrs you may have missed a period to join the plan, but check with HR.
Choose a sensible investment within the choices. If you ever leave the company it is likely you can transfer the funds to a self-directed locked-in RRSP, so the money does not get forgotten over the years.
Added: there is nothing to prevent you from still having your own RRSP now or in the future, but the amount you can contribute will be limited by the contributions going into the company plan (that's not a bad thing, just needs to be accounted for).
 

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What is there to think about? Are you one of 100% small cap weed / mining / oil and gas / pharma / crypto daredevils? Immediately doubling your money and then putting it into a balanced 0.5% MER fund is a huge disappointment to you?
 

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Think of it this way, you are investing 4% of your salary and your money is guaranteed to double instantly. You will not find any other investment option that does that!
 
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