RRSPs – Now is the Time
March 1, 2011, is the deadline for contributing to an RRSP for the 2010 tax year.
Just by virtue of your being here and reading this, I can make a fairly safe guess that you know what an RRSP is, and why you would want to contribute to one. If not, that’s ok too; just trust me for now that it’s probably a good idea for you.
There is still time for you to make a contribution to your RRSP (or start a new one) and have it count for your 2010 taxes. If you have already contributed the maximum amount for that year, then it’s a good time to start putting money away for 2011. Earlier is better, which is one of five basic investing strategies listed in the Globe and Mail’s “A tale of two RRSPs”
- Increase your annual contribution
- Contribute early in the year
- Start contributing early in life
- Contribute longer by retiring later
- Earn a higher rate of return
The article then offers a very nice, simple, calculator that allows you to compare two different RRSP scenarios; for example, different retirement ages or contribution amounts. I highly recommend taking a look, playing with some numbers, and seeing just how important it is for you to make contributions to your RRSP, no matter how young you are.
