I met a potential client this morning for breakfast and she gave me some dreadful news – apparently, according to the Old Farmer’s Almanac, predictions for Canada’s upcoming winter season is defined as the “T-Rex of winters” – meaning that it’s going to colder and snowier than last year (as if we even thought that was possible).
As I walked back to my office, shuddering at the cold, I thought that winter also brings along with it the greatness of holiday cheer and the quick transition into new year’s resolutions, RRSP season and tax time. I can tell you confidently, after 7 years in the business, that RRSP contributions are almost always left to the 11th hour. Why? Perhaps it’s because the most obvious reason to contribute to one’s RRSP is to reduce their taxable income for the year – and so one may only be prompted to think of that during tax time… but why delay the opportunity of having tax sheltered growth all year long?
As you prepare for the T-Rex of winters this year, consider that you can also be doing things - beyond making contributions up to the annual limit – to truly maximize you RRSP’s potential for tax-deferred retirement savings. Click here for an article we’ve published, titled “12 Strategies to Maximize Your RRSP” where we look at ways to make sure you’re getting the most from your RRSP’s tax-deferred growth potential – from establishing a spousal RRSP for income splitting, to finding the right balance of growth, income and capital preservation in line with your needs and stage in life, and more.
The deadline to contribute to your RRSP this year is March 2, 2015. If you have any questions about maximizing your RRSP, or would like to arrange a contribution to your RRSP before the deadline’s mad rush, just say the word.