Common mistakes people make in RRSP season (Video)
By Kevin Press, BrighterLife.ca
“The biggest mistake is failing to contribute to an RRSP at all and therefore paying more income tax than you need to come April,” says Jonathan Chevreau, Personal finance columnist for the Financial Post and author of Findependence Day.
For more of Chevreau’s tips on what to avoid, watch:
Watch part one of Kevin Press’s interview with Jonathan Chevreau on Should you pay down debt or save for your retirement?
For more retirement savings tips, check out:
The simplest RRSP primer ever
Registered Retirement Savings Plans (RRSPs) simply put (Video)
How much can you contribute to an RRSP?
Where to stash your cash: RRSP or TFSA?
When was the last time you reviewed your personal economic plan? Talking with your advisor can help ensure you’re on track to meet your financial and retirement goals. Don’t have an advisor? Visit Sun Life Financial Advisor Match to help you find one in your area.
[...] Watch part one of Kevin Press’s interview with Jonathan Chevreau’s on Common mistakes people make in RRSP season. [...]
Mr. Chevreau made a great point about pre-authorised savings. I strongly believe that when a person authorises his or her bank to automatically invest a specific portion of his or her paycheck into an RRSP or TFSA, that person is a step ahead of everyone else. When I worked at my first job after completing my undergrad program, I authorised my bank to invest a specific portion of each paycheck into an RRSP. The first advantage was that I didn’t miss that money because it was accounted for in my monthly budget. The second advantage was that I was able to contribute small amounts over the year to my savings plan instead of making a lump-sum payment at RRSP time that I couldn’t necessarily afford.
My supervisor in that first job suggested that I read “The Automatic Millionaire” by David Bach, and the advice in that book was so useful that I still follow it today. It may seem simple, but the notions of paying yourself first and paying down debt as soon as possible will allow a person to put more money into his or her retirement fund. He or she may not become a millionaire, but that person may be able to have a significant net egg by the time he or she is ready to retire.
Thanks David.
You’ve reminded me of a time early in my career when I was employed by a small organization that didn’t sponsor a retirement savings plan. Our accountant offered to help me set up an individual RRSP account and to carve off a small piece of my salary for automatic deposit. I foolishly declined, preferring instead to spend my spare cash on records and similarly non-interest generating investments. I hope my kids don’t make the same mistake.
[...] Learn how to avoid common RRSP mistakes Watch the first of Kevin Press’s interviews with personal finance columnist, Jonathan Chevreau: Common mistakes people make in RRSP season. [...]
[...] de Kevin Press avec Jonathan Chevreau, chroniqueur en finances personnelles, qui portait sur les erreurs courantes commises pendant la saison des REER (Vidéo) (en anglais [...]
[...] Watch part one of Kevin Press’s interview with Jonathan Chevreau on Common mistakes people make in RRSP season. [...]
[...] Common mistakes people make in RRSP season (Video) [...]
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