Should I keep buying venture capital funds?

You have to look forward to what the situation will be at the time you retire. How much money will you have in your RRSP, what percentage of that would be in labour-sponsored venture capital funds if you continued to buy them, and what income will you have from other sources?

You can continue to enjoy the tax planning benefits of venture capital funds with some careful planning. Suppose you invested $5,000 a year in these funds for the next eight years. Each year after you retire, one of the funds will reach the end of the holding period. Your original capital and any profits made over the eight years will thus become available to you. Based on your other assets, you need to determine if this will be adequate for your needs. I suggest you ask a financial advisor to work out some projections for you. – G.P.