Scrounging for an RRSP Contribution?

Posted 15 Feb 2016 by Patricia Bell, PFP


The phrase “RRSP season” should be familiar to many of us – the scramble to top-up your RRSP before the deadline in order to either reduce your tax bill or increase your refund. Well, it’s that time of year again. The media’s investment gurus are barraging us with pleas to make our RRSP contributions before the Feb. 29, 2016 deadline.

Don’t get me wrong, making an annual RRSP contribution is one of the best ways to plan for your ideal retirement (you know the one you see in all the glossy ads). Not to mention it’s an effective tool for reducing your taxable income.

But is there a better way than scrounging for extra cash after recovering from the holidays or planning your winter escape?

Yes, there is!

A regular monthly or bi-weekly RRSP contribution – also known as pre-authorized contributions (PACs) – not only takes the sting out of the last minute scramble for cash, it’s also a better investment strategy. Financial markets are unpredictable. Instead of making a single lump-sum RRSP contribution, having a regular PAC helps you take the guesswork out of when the best time to invest might be. Today? Tomorrow?  Next week? Regular contributions smooth out the bumps. When markets are down, you’re buying into your investment when it’s more or less “on sale.”

This year, after making your RRSP contribution, why not start a regular contribution to your retirement dream? It’s easier on your wallet, easier on your time and just better planning. Whether your retirement dream looks like the ads or not, help yourself make it a reality.