It seems that every year thousands of Canadians rush to make a last minute Retirement Savings Plan (RSP) investment before the inevitable deadline. If this sounds like you, how do you know the decisions you are making are right for your financial future?
It's important to remember that an RSP should be individualized and must fit well with your own personal financial goals. But there are some simple strategies anyone can put into place that will help them get the most out of their RSP.

Here are some essential RSP strategies:

1. Contribute early
Make your contribution as early in the year as possible. Tax deferred compounding makes those early dollars grow dramatically.

2. Contribute the maximum
Take advantage of compounding and get the maximum tax break by contributing your limit. You can invest up to 18 per cent of your previous year's earned income, to a maximum of $13,500 (less your pension adjustment or past service pension adjustment). Remember, while you can "carry forward" any unused contribution room to subsequent years (until after age 69), you can never replace the lost growth opportunity.

3. Invest monthly
Many investors find it easier to reach their annual RSP maximum by making contributions every month. You may find it easier to have the RSP contribution automatically deducted from your bank account each month, or you may choose to belong to a Group RSP and make your RSP contribution by payroll deduction through your employer. Remember, it's a good idea to increase your monthly contribution if your income rises.

4. Consider borrowing
Don't let tight cash flow deter you from considering an RSP loan to top up your contribution. Although you'll pay interest on the amount borrowed, the compound growth of your money over the long term can far outweigh the interest cost. Plus, you can use your tax refund to pay off a substantial portion of the amount borrowed.

5. Invest in a spousal RSP
A spousal RSP allows the spouse with the higher income to contribute to an RSP owned by the lower-income spouse. The spouse with the higher income takes the immediate tax deduction, but the money in the RSP will be taxed in the other spouse's hands, usually at a lower rate, when it is withdrawn. This is an excellent way to income split in retirement and reduce your combined tax rate.

6. Diversify
Different types of investments react differently to economic events. By diversifying your portfolio and holding various types of investments, you protect yourself against the day-to-day fluctuations in any one category. To achieve long-term growth you should diversify. Some investors limit themselves to fixed-income investments, but inflation can have a corrosive effect on conservative investments. Consider diversifying into growth oriented securities-such as equities and equity mutual funds-to earn returns that may far outstrip the rate of inflation over the long-term.

7. Increase your foreign content
You are allowed to invest up to 30 per cent of the cost amount of the investments in your RSP in foreign property holdings. The advantage? As Canadian investments make up only about three per cent of the world's markets, investing outside Canada taps you into the other 97 per cent, giving you additional opportunities for growth and diversification.

8. Consolidate your investments
If you are the type of investor who doesn't want to spend a great deal of time managing several plans, you may want to consolidate your investments into one portfolio. Yes, you should have a diversified portfolio of investments working for you, but you can usually combine them under one RSP umbrella. This strategy also means you will get one consolidated statement, which may make it easier to track your plan.

9. Designate a beneficiary
Consider designating someone to whom the plan assets should go in the event of your death. Without a designated beneficiary the account will go through your estate and be subject to probate and other fees. You should talk to your Certified Financial Planner about the tax and other consequences of designating a beneficiary to your RSP.

10. Get expert help
The services of your Financial Planner are essential to help you make the right long-term investment decisions. Together, you should review your plan at least once a year to make sure that it is still on track with your long-term goals.