The Reminder is making its archives back to 2003 available on our website. Please note that, due to technical limitations, archive articles are presented without the usual formatting.
Contribute to your RSP now before it's too late. You have until March 1 this year to contribute and take advantage of a possible tax deduction for 2003. 1. Contribute now - allocate later Contribute to your RSP now and put it into a money market fund. You can allocate your RSP investments later with the help of your investment advisor. "Remember it's important to contribute to your RSP now and get the deduction," says Mike Quinn, President and Chief Investment Officer of Bissett Investment Management. "Then you can sit down with your investment advisor later to figure out where to invest your money." 2. Contribute the maximum amount According to the Canadian Customs and Revenue Agency (CCRA), you can contribute up to 18 per cent of last year's income to a maximum of $14,500 in your RSP. Just check last year's tax return for the maximum amount you can contribute. Note that any unused contribution can be carried forward to the following year. 3. Don't forget to plan You've made a RSP contribution, don't forget to do something with it. You should meet with your investment advisor to figure out your long term goals and where you will allocate your investments. "If you haven't already found an investment advisor that you can trust, ask people you know such as friends, family and work colleagues for references," says Quinn. To find out more tips on finding an advisor to help you with your investment needs, visit www.franklintempleton.ca. 4. Avoid the rush next year "To avoid having to come up with a lump sum for your RSP next year, you can set up an automatic monthly contribution plan," says Bissett's Quinn. You can also take advantage of 'dollar cost averaging' when you contribute regularly, by averaging in your investments over time. 5. Think about what to do with that tax refund Even though that cheque hasn't come in the mail just yet, you need to plan what you will do if you get a tax refund. One option is to use your tax refund to get a jump start on next year's RSP contribution.
