19 Feb Don’t hit snooze – An RRSP reminder
Eat your vegetables, get more sleep and contribute to your RRSP in 2017. There, you’ve got the reminders.
Each reminder is healthy and each has a payoff, including one financial payoff.
Contributing to your RRSP can save you some tax in 2017 (short-term payoff) and help fund your retirement (long-term payoff). It’s a payoff that spans time.
Three main advantages of contributing to an RRSP:
- Contributions are tax deductible
- Earnings in an RRSP are sheltered from tax
- Taxes on money in RRSPs are deferred until you make withdrawals
Reminding you to contribute to your RRSP is not just an “eat your broccoli” message – though you’re encouraged to eat more vegetables – it is smart money management!
- Contribution deadline: March 1, 2018
- Annual contribution limit for 2017 is $26,010
- If you’re in a pension plan, your pension adjustment will reduce your contribution amount
- Your RRSP deduction limit is reported on your Notice of Assessment from Canada Revenue Agency
Put an RRSP reminder in your email calendar and crank up the alert volume. Create a Reminder in your mobile phone. Add a New Event to your phone calendar. Put an RRSP sticky note on your desktop(s). Put a sticky note on top of your desk(s). Update your social media anniversaries so friends and family can encourage you to contribute.
Tie a piece of string around your finger. Then take a photo of the string and tweet it to your financial advisor – Take the payoff, make an RRSP contribution for the 2017 tax year. It will make you feel better!
The (old school) clock is ticking. You’ve been reminded!
To view this article by Mackenzie Investments, CLICK HERE. If you need help to make your RRSP contribution be sure to contact Harry Perler or David Olejnik.