My Full-Time Employee Benefit: Group RRSP with Manulife

Recently I took advantage of the opportunity to participate in a group RRSP at work. (I also have a personal RRSP with Canadian ETFs.)

The group Registered Retirement Savings Plan (GRRSP) is managed by Manulife. I can choose what type of mutual funds I want to invest in an RRSP.

How Does a Group RRSP Work

As a full-time employee, if I join the group RRSP, the company will invest 4% (gross biweekly salary) on my account while I am required to put in 3% (minimum) of my gross salary. That’s a total of 7% every payday or 14% in a month.

The contribution of employer depends on how long an employee works in a company.

As an employee I can increase my contribution. For now, I’m testing the water and collecting free cash as much as I could.

Show Me the Data

That’s also my question. I chose MAM US Equity Index Fund (8131 – fund code) and used my favourite tools to find out historical fund performance other than what’s on the Manulife’s website.

I can’t find any.

I guess I’ll settle on what ever meager information I can get. As an investor, I may receive more information later on especially on tax season.

Top Holdings of MAM US Equity Index Fund

1. Microsoft – 4.20 %
2. Apple Inc. – 3.80 %
3. Amazon.com Inc – 2.90 %
4. Facebook Inc – 1.70 %
5. Berkshire Hathaway Inc – 1.60 %
6. JPMorgan Chase & Co – 1.50%
7. Alphabet Inc – 1.50 %
8. Johnson & Johnson – 1.40 %
9. Procter & Gamble Co – 1.20 %

It’s nice to know that I invest in Apple and Amazon. I often use their products.

These days I take an opportunity to write on my iPhone and order online on Amazon for sustainable products like bamboo toothbrush and produce bags.

Why Invest on Mutual Funds

Early this year, I moved my TD e-series (mutual funds) to Questrade and bought ETFs.

That was a smooth but frightening transition. It isn’t a humongous amount so I mustered enough courage to do everything online. I’m learning as much as I could with a small portfolio.

Who wants to screw up a big investment anyway.

I stay away from mutual funds since then, but I couldn’t let the opportunity of getting free cash from my employer. Whether its mutual fund or ETF, I’ll take any chance to have an employer invest for my financial freedom.

My co-worker decided not to invest in an RRSP but prefer to pay for an insurance with investment. I, on the other hand, chose a BTID (buy term invest the difference) approach.

To each his own. What would you do when such opportunity arrive? Will you take or leave it?

Other Readings About GRRSP

I’m sharing other writings about group RRSP with Manulife and anything related to GRRSP.

• Reddit: RRSP with Manulife Through Employer or Through Bank?
• High Interest Savings: My Experience with Manulife
• Canadian Couch Potato: Are Target Date Funds Right For You?
• Retire Happy: Choosing the Best Provider for Group RRSPs Plans

So you can tell that there’s not much information about GRRSP. I hope I can write more about this topic with my experience.

An employee should choose well on what funds to invest their money in and the best ways to use and withdraw the fund in the future.

Final Thoughts

Investing in a group RRSP is one of the benefits of a full-time employee in Canada.
I still wonder why isn’t there any TFSA. It’s probably because the company encourages their employees to leave money invested till retirement.

Unfortunately, I learned (they share their stories with me) that some of my co-workers withdrew their RRSP for a trip or vehicle.

“Why would I wait to enjoy my hard-earned money.”

I was lost for word and sad about it but I wouldn’t blame them if financial independence is not their goal. But what about being able to afford future expenses in retirement.

Isn’t that a goal, enough to delay gratification?

Take advantage of work benefits and keep your eye on the goal to be able to keep on investing.

Don’t miss the opportunity to invest in your working years. Do you participate in a group RRSP?

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