Save for the future without breaking
the bank now
It’s hard to find a balance between
keeping money in your wallet now, leading the lifestyle you enjoy,
and also saving for the future. There are many considerations when
determining the savings plan that’s right for you: one
option is a Retirement Savings Plan (RSP). The deadline for making
RSP contributions for the 2010 tax year is March 1, 2011.
Other options include: paying down your debt or
mortgage, contributing to a Tax-Free Savings Account (TFSA), or a
Registered Education Savings Plan (RESP).
“For many Canadians, RSPs are an
excellent way to save for a financially-secure future,”
said Patricia Lovett-Reid, Senior Vice President, TD Waterhouse.
“However, ensure that you carefully weigh all the
alternatives and find the right mix of investment tools that will
help you achieve your short, medium and long-term
Here are some tips to help you get started
– or help with your current investments:
Make sure you have a plan. Know
what your goals are and determine what financial steps are needed
to get there. An experienced financial advisor could help you build
a custom plan suited for your personal situation as well as help
you manage it.
Contribute regularly. Monthly
contributions can help you reach your total annual contribution
goal. Investigate taking advantage of payroll deductions for RSP if
offered by your employer.
If short of funds, consider a loan for your
RSP contributions. The tax deferred compound growth on
your investments could potentially outweigh the interest costs.
Evaluate your investment portfolio
regularly. Analyze your asset allocation and assess if
it’s appropriate for your required return, time horizon
and risk tolerance, as well as if you’re on track to meet
Be mindful of the limits. Review
your Notice of Assessment statement provided by
the Canada Revenue Agency to check the maximum you can contribute
to your RSP. You will pay a penalty if you over-contribute.
For more information about how to make the most of
your retirement savings or how to start investing in RSPs, please