RRSP deadline is February 29, 2012
January 24, 2012
There are many reasons to save for your retirement using an RRSP:
*Immediate tax benefits: Your contribution is deducted from your total income to reduce the amount of income tax you pay.
*Tax-deferred growth: Growth within your RRSP is accumulated tax-free until you withdraw the funds
*Choice: A wide range of investment options are available to meet your unique needs.
Be sure to look at the 2 articles we have attached here that discuss the details of RRSP plans as well as the difference between TFSAs and RRSPs
If your RRSP is with Manulife Securities, you can make your RRSP contribution via online/telephone banking. Start by setting up Manulife Securities Investment Services Inc. as a vendor or payee. The account number will be your RRSP account number listed on the statement (please call or e-mail our office if you don't have it). Make the deposit as if you were paying any other bill. Payments typically take one to three business days to arrive at Manulife Securities. Deposits to RRSP accounts will be coded as contributions as soon as they are received at Manulife Securities and we will be able to email you a receipt directly from our office.
If you don't already have an RRSP account set up with us and would like to talk to Brad, Terry or Kris about this before the deadline, please give us a call or send us an email and we will be happy to speak with you.
Consider a Dollar-Cost Averaging approach starting this year. This enables you to ease into the market gradually and without the concern of investing a lump sum at the wrong time. You will be able to take advantage of the highs and lows of the market while smoothing the overall cost of the investment over time. If you don't already have a PAC (pre-authorized chequing plan) set up, we can set up a weekly, bi-weekly or monthly PAC to your plan directly from your bank account for amounts as low as $25 (depending on the fund company you are investing with).
Don't forget about the Tax-Free Savings Account (TFSA): it allows Canadians aged 18 and over to save tax-free for any number of financial goals and can be an effective way to supplement your income in retirement. There is no deadline for a TFSA (see attached article with some details)
Attachments:
quick_fact_sheet_on_rrsps.pdf
fact_sheet_on_tfsa_vs_rrsp.pdf
