This year’s RRSP contribution deadline of March 2nd is fast approaching… and with it comes the decision of how much to put away. At this time of year you’re bombarded with the same message: “You should always maximize your RRSP.” But is that more myth than good advice?
As a long-time active money Portfolio Manager, I’d say it depends on your circumstances. If you are in the highest taxable income bracket, yes you should always maximize your RRSP. However, there are other options to keep in mind.
What Is An RRSP?
A Registered Retirement Savings Plan (RRSP) is a tax deferral mechanism designed to help you save for retirement. Within your RRSP you can hold investments such as: cash, Guaranteed Investment Certificates (GICs), Mutual Funds, Exchange Traded Funds (ETFs), bonds and individual stocks (equities). Continue reading “When Should I Maximize My RRSP Contributions?”