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What do you think about labour sponsored funds like Fondaction or Fonds de solidarité FTQ? My only RRSP is in Fondaction. Although the last few years have given interesting results (with the tax credits), I’m having doubts as to how flexible they are. They also have high management fees (2,93% according to their 2020 prospectus). Fondaction is really picky when you want to withdraw your money. In fact, I don’t even think there’s a way to “get out” of the fund unless some precise conditions are met (buying a home, returning to school, early retirement (not possible before age 45))… My understanding is that for other RRSPs, it is possible to withdraw at any moment, without some of those restrictions. I don’t plan on touching my RRSP before my retirement unless I use the Home Buyer’s Plan (HBP), but labour-sponsored funds seem more complicated in general. Plus, they require the investor to withdraw every other RRSP before beign allowed to touch theirs. When my TFSA will be maxed out, would it be interesting to open a regular RRSP and contribute to the max deductible amount in Fondaction (5000$) first, then contribute any remaining money in the second RRSP? Should I forget about Fondaction, leave it untouched until retirement (25+ years) and contribute in a regular RRSP only? I’m feeling like I might have made a bad decision when I first contributed nearly 3 years ago. Earlier this year, I stopped contributing to Fondaction altogether to start thinking about my options. I would very much appreciate your input. Thanks!
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