2009 RRSP DEADLINE: March 1 2010

The last day for topping up your 2009 RSP contribution is coming up fast.   Amazingly, many of us do not contribute our maximum, even though it still remains one of best ways to both save for retirement and reduce taxes.

If you don’t have the cash:

• Ask us about RSP loans.  They are quick and easy, and with interest rates so low, its a great opportunity to get the tax deduction and meet your retirement goals.
• Consider making a ‘contribution in kind’.  You can transfer investments you own personally to your RSP, and get a receipt for the current market value.  But don’t forget that any capital gains to the date of transfer will be triggered.

With the Winter Olympics taking place during the last two weeks of February, don’t wait until the last minute!  Getting around town during that time will be a challenge for everyone.

Consider a regular monthly RSP contribution, instead of coming up with a large amount at once.  It’s often easier on the pocket, and it’s often a better way to invest (dollar cost averaging).

Don’t forget to use your tax refund wisely!  Repay loans or mortgages, or get a jump start on your 2010 RSP contribution to make a significant improvement to your financial needs.