{"id":944,"date":"2019-04-01T12:00:15","date_gmt":"2019-04-01T16:00:15","guid":{"rendered":"https:\/\/fortax.ca\/?p=944"},"modified":"2019-04-01T12:00:15","modified_gmt":"2019-04-01T16:00:15","slug":"plan-now-and-avoid-next-years-rrsp-scramble","status":"publish","type":"post","link":"https:\/\/evolvethought.com\/fortax\/2019\/04\/01\/plan-now-and-avoid-next-years-rrsp-scramble\/","title":{"rendered":"Plan now \u2014 and avoid next year\u2019s RRSP scramble"},"content":{"rendered":"<style>\n.page-title-inner {display: none;}\n.entry-header-text-top {display: none;}\ndiv#comments {display: none;}\n.entry-author {display:none;}\nfooter.entry-meta {display: none;}\n.sp-big-p {font-size: 120%; font-weight: 600;}\n<\/style>\n<h4 style=\"font-size: 180%; font-weight: 500;\">Listen to this Podcast<\/h4>\n<p><iframe frameborder='0' height='94px' scrolling='no' seamless src='https:\/\/simplecast.com\/e\/779495c3?style=medium-light' width='100%'><\/iframe><br \/>\n[gap]<br \/>\n[divider width=&#8221;100%&#8221; height=&#8221;1.5px&#8221;]<\/p>\n<h2 style=\"margin-bottom: 1em;\">Plan now \u2014 and avoid next year\u2019s RRSP scramble<\/h2>\n<p>If you\u2019re like a great many Canadians, making an RRSP contribution by the March 1 deadline feels like a mad dash to the finish line.<\/p>\n<p>Take the stress off yourself and avoid the RRSP scramble next year \u2014 and the year after, and the year after\u2026. With just a little planning and a few simple steps today, you\u2019ll never have to worry about the RRSP deadline again.<\/p>\n<h4><strong>Decide how much<\/strong><\/h4>\n<p>The first step is to figure out how much you will contribute. Take a look at what you contributed last year. Was it enough to at least reduce your taxes owing to zero? Consider your long-term retirement savings plan. How long do you have to save and how much do you need to contribute each year to achieve your retirement savings goal?<\/p>\n<h4><strong>Make it manageable<\/strong><\/h4>\n<p>Whatever sum you come up with, divide it by 12 for your monthly contribution. Now, instead of having to find, say, $6,000 in March, you only have to worry about finding $500 a month \u2014 or, better yet, $230 on payday every two weeks.<\/p>\n<h4><strong>Make it automatic<\/strong><\/h4>\n<p>The best way to guarantee you follow through is to set up an automatic savings plan that transfers money from your bank account into your RRSP account. That way, you don\u2019t have to make the decision to contribute each month, and you\u2019ll never forget. You simply choose the frequency of withdrawals, the amount to be moved and the date of the transaction. After a few months you may not even notice the \u201cmissing money.\u201d<\/p>\n<h4><strong>Avoid over contributing<\/strong><\/h4>\n<p>Being proactive is great \u2014 but don\u2019t contribute more than you\u2019re allowed, or you\u2019ll pay a penalty. You can contribute up to 18% of your previous year\u2019s income, to a maximum of $26,500 for the 2019 tax year, plus any contribution room you didn\u2019t use in previous years. These amounts are documented on your latest Notice of Assessment, and on the CRA\u2019s My Account website.<\/p>\n<h4><strong>Reap the benefits<\/strong><\/h4>\n<p>Not only does contributing through the year bring you peace of mind, it also gives your deposits extra time to enjoy compound growth. That means, with the same total contribution amount, your nest egg with monthly contributions will be higher than if you make annual deposits. Another benefit of contributing early is that you have time to formulate a carefully planned RRSP investment strategy.<\/p>\n<h4><strong>Find a destination<\/strong><\/h4>\n<p>Ready to get started, but not sure how you want to invest your money? Don\u2019t let that stop the momentum. Call your advisor today. He or she will work with you to develop an RRSP investment plan that\u2019s right for you.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Listen to this Podcast [gap] [divider width=&#8221;100%&#8221; height=&#8221;1.5px&#8221;] Plan now \u2014 and avoid next year\u2019s RRSP scramble If you\u2019re like a great many Canadians, making an RRSP contribution by the March 1 deadline feels like a mad dash to the finish line. Take the stress off yourself and avoid the RRSP scramble next year \u2014&#8230;<\/p>\n","protected":false},"author":1,"featured_media":946,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"footnotes":""},"categories":[72],"tags":[],"class_list":["post-944","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-fortax-blog"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/evolvethought.com\/fortax\/wp-json\/wp\/v2\/posts\/944","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/evolvethought.com\/fortax\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/evolvethought.com\/fortax\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/evolvethought.com\/fortax\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/evolvethought.com\/fortax\/wp-json\/wp\/v2\/comments?post=944"}],"version-history":[{"count":0,"href":"https:\/\/evolvethought.com\/fortax\/wp-json\/wp\/v2\/posts\/944\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/evolvethought.com\/fortax\/wp-json\/wp\/v2\/media\/946"}],"wp:attachment":[{"href":"https:\/\/evolvethought.com\/fortax\/wp-json\/wp\/v2\/media?parent=944"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/evolvethought.com\/fortax\/wp-json\/wp\/v2\/categories?post=944"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/evolvethought.com\/fortax\/wp-json\/wp\/v2\/tags?post=944"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}