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The Registered Retirement Savings Plan (RRSP) contribution deadline of March 1, 2026 approaches. For Canadian investors seeking portfolios aligned with Christian values, understanding how the Capstone Biblically Informed Canadian and U.S. Equity Funds fit within retirement planning can assist contribution decisions.
This article provides general education. Consult a qualified financial advisor who can assess your specific circumstances, risk tolerance, and retirement goals.
Why Values Alignment Matters for Retirement
Retirement portfolios represent the longest-term investments most people make, with horizons often extending 30-50 years. These extended timeframes make retirement accounts particularly suitable for values-aligned investing.
When investing for decades, your portfolio represents businesses you're supporting with your capital. The Capstone Biblically Informed Canadian and U.S. Equity Funds apply biblical research criteria alongside traditional fundamental analysis, combining values alignment with professional active management.
The Canadian Fund in RRSPs
The Capstone Biblically Informed Canadian Equity Fund focuses on Canadian equity exposure with biblical research criteria applied to stock selection.
Key Characteristics:
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Canadian-listed companies providing domestic market exposure
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Emphasis on dividend-paying securities within our biblical research framework
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Active management with biblical research aligns with long-term retirement investing
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Values consistency, providing peace of mind over decades
The U.S. Fund for Geographic Diversification
The Capstone Biblically Informed U.S. Equity Fund provides U.S. equity exposure within a Canadian fund structure.
Key Benefits:
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Access to significantly larger U.S. equity market with different sector representation
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Canadian dollar denomination simplifies account management
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Same Four Guiding Investment Principles applied to U.S. companies
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Balanced approach pursuing capital appreciation and income
RRSP Structure Benefits
Tax-Deferred Growth: Investment returns compound tax-deferred. You pay no tax until withdrawal, significantly enhancing long-term wealth accumulation.
Time to Recover from Volatility: Long time horizons allow recovery from market downturns without tax consequences from rebalancing.
Contribution Tax Deductions: RRSP contributions generate tax deductions, reducing your current taxable income.
Income Splitting Potential: Some retirement strategies allow income splitting with a spouse, potentially reducing overall family tax burden.
Asset Allocation Considerations
How these funds fit depends on your complete asset allocation strategy.
Equity Allocation: Appropriate allocation depends on age, retirement timeline, risk tolerance, and other financial resources.
Geographic Diversification: The two funds together provide geographically diversified equity exposure with values alignment throughout North America.
Sector Exposure: Biblical research criteria affects sector representation compared to broad market indices.Your financial advisor can assess how these funds fit within your retirement portfolio construction.
Equity Allocation by Life Stage
Early Career (20s-30s): With 30+ years until retirement, one typically can consider higher equity allocations. Extended time horizons provide an opportunity to recover from market volatility.
Mid-Career (40s-50s): With 15-25 years until retirement, maintain significant equity exposure while gradually incorporating more exposure to fixed income investments.
Pre-Retirement (Late 50s-60s): Some reduce equity exposure to minimize downturn impacts before retirement. However, retirement can last 25+ years, so complete equity avoidance may not serve long-term needs.
In Retirement: Many retirees maintain equity allocations to help portfolios continue growing through 25-30 years of retirement spending.
Questions for Your Financial Advisor
Portfolio Fit:
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How would these funds fit within my current retirement portfolio allocation?
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What would be an appropriate combined allocation given my circumstances?
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Should I hold these funds in my RRSP, or would other account types be more suitable?
Values Alignment:
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How does the biblical research methodology align with my personal values?
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What resources are available to understand the Four Guiding Investment Principles?
Investment Approach:
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What are the fees and how do they compare to my current holdings?
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What is the investment team's experience and track record?
Implementation:
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Can I purchase these funds within my current RRSP account?
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Should I contribute lump sum or build positions gradually?
RRSP Contribution Strategies
Lump Sum: Contributing your full RRSP amount in one transaction provides maximum time in the market. Offers simplicity and puts money to work immediately.
Dollar-Cost Averaging: Spreading contributions over time purchases at different price points. Reduces market timing impact.
Pre-Authorized Contributions: Regular monthly or biweekly contributions automate saving and naturally implement dollar-cost averaging.
Tax Refund Reinvestment: Reinvest your tax refund as an additional contribution, maximizing the tax benefit.
Your financial advisor can help determine which strategy suits your circumstances and comfort level.
Beyond RRSPs: Other Account Types
TFSAs: Tax-free growth and withdrawals. Valuable for investors who have maximized RRSP contributions, expect higher tax brackets in retirement, or need more flexibility.
RESPs: Parents and grandparents can use RESPs for children's education funds.
Non-Registered Accounts: The Canadian fund's dividend focus can provide tax-efficient income, as Canadian dividends benefit from the dividend tax credit.
RDSPs: Eligible Canadians with disabilities can use RDSPs to grow investment income and grants/bonds tax-deferred until withdrawn, with potential government contributions through the Canada Disability Savings Grant and Canada Disability Savings Bond.
LIRAs: Investors with locked-in pension funds can hold and grow those assets tax-deferred until retirement, at which point the account converts to a LIF and withdrawals are taxed as ordinary income.
FHSAs: First-time home buyers can contribute to an FHSA and benefit from tax-deductible contributions and tax-free qualifying withdrawals when purchasing a first home.
How to Purchase
Through a Financial Advisor: They can assess suitability, help determine appropriate allocation, and execute purchases within your RRSP.
Through Discount Brokerages: Self-directed investors can access the ETF series (TSX:BIVC and TSX:BIVU) through discount brokerage platforms.
Required Documentation: Before investing, review the prospectus and fund facts available at capstoneassets.ca or through SEDAR+ at www.sedarplus.ca.
Contribution Room: Ensure you have available RRSP contribution room. Your most recent Notice of Assessment shows available room. Over-contributing results in penalties.
Retirement Planning as Stewardship
For those seeking portfolios aligned with Christian values, retirement planning represents an opportunity to practice biblical stewardship. Decades-long time horizons mean your portfolio choices affect which businesses receive your investment capital for extended periods.
The Capstone Biblically Informed Canadian and U.S. Equity Funds apply the Four Guiding Investment Principles (valuing human life, stewarding creation responsibly, encouraging healthy behaviors, and supporting biblically consistent practices) while pursuing appropriate long-term returns for retirement goals.
As RRSP season approaches, reviewing how your retirement portfolio aligns with both your financial and values-based goals can help ensure your long-term savings reflect what matters most to you.
For more information, visit capstoneassets.ca or call 1.855.437.7103.
*Important Legal Disclosures: Commissions, trailing commissions, management fees, and expenses may be associated with investments in mutual funds and exchange-traded funds. Please read the prospectus before investing. Mutual funds and ETFs are not guaranteed; their values change frequently, and past performance may not be repeated. The simplified prospectus, fund facts, and ETF facts are available on SEDAR+ at www.sedarplus.ca or consult with a registered investment dealer or advisor.