April 22, 2014 Retirement White Papers Asset Location for Taxable – Investors Is it still wise to keep bonds in your RRSP? Published: April 22, 2014 “Asset location” involves finding the most tax-efficient account type for each holding in a portfolio. The various types of investment returns—interest from bonds, dividends from Canadian and foreign stocks, capital gains—are taxed in different ways, so asset location can have a large impact on after-tax returns. For investors with unused contribution room in RRSPs and other registered accounts, asset location is rarely a concern. However, if you have maxed out your tax-sheltered accounts, you will need to keep any additional savings in non-registered (taxable) accounts. The most important question, therefore, is which asset classes are best held in your RRSP, and which should be held in taxable accounts? Download Asset Location for Taxable – Investors Is it still wise to keep bonds in your RRSP?