As the end of RRSP season rapidly approaches (for the 2014 tax year, the deadline is March 2, 2015), you may feel like you’ve missed the boat.
But- you still have time, and you should really jump in feet first to your retirement savings if you haven’t yet. Like today. Right now.
I don’t have any money
One of the fallacies of investing is that people believe that it’s only worthwhile if you have huge sums of money to sock away. While more would be beneficial, every little bit counts. It’s about setting up savings habits today that are only going to benefit you in the long term.
Make the last week or so of RRSP season that of sacrifice, and try to scrape together even a little bit to get the ball rolling, or to top up contributions from past years.
Good things come to those who wait?
Generally, when preaching responsible money management, patience is most definitely a virtue. However when it comes to investing with a long-term horizon in sight, is will actually cost you to wait.
Reason being is that money put into some sort of investment today- will start earning money today. Like right now.
I don’t know what to invest in
You’re not alone and good for you for taking a step back to consider your investment options before jumping headlong in.
Did you know that you can park your RRSP contribution in cash-equivalent investments (i.e. liquid), simply as a short-term solution? You get your tax break now- and then look at your options when you (and your financial advisor or banker) has more time, post-RRSP deadline.
Plan for next year now
Do you like this last-minute scramble? Probably not. Take this opportunity, while you are at your financial institution making your contribution, to set up some sort of monthly contribution. The best savings is seamless, and taking it right off your paycheque without having it pass through your hands is the way to go.