With the RRSP contribution deadline approaching on Monday March 2, it’s important not to miss the opportunity of contributing to save taxes on your 2008 income filing. If you don’t have the cash to contribute, consider taking out an RRSP loan. Rates are low and if you expect a refund, you can use it to substantially reduce the loan amount. If no cash, consider an “in kind” contribution of securities or investments held outside of a registered account. Their market value at the time of contribution to the RRSP equals your RRSP contribution amount. Lastly, there’s always the bank of Mom and Dad for young people!
Just make the contribution and worry about how to invest it later in the month. Many think they need to make an investment decision right away, rather than parking the contribution into a cash savings vehicle until they have the time to make a thoughtful and planned investment decision based on a financial plan.
No financial plan? Now’s a good time to take make financial planning more of a priority. Don’t get caught next year – make an appointment with a financial advisor as soon as possible and get on a reasoned path towards meeting your financial goals.
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