Monday, 29 February 2016

RRSP deadline is today

February 29.
Wow! That comes only once in 4 years. 
For people who want to contribute to RRSP to take advantage for 2015 taxes, today is the deadline. 
I put some money already. There is no stress now. With the current stressful financial situation, I am not maximizing my contributions.
For the 2016, I am planning to save up throughout the year.  
The correct strategy might be to save about 18% of the pre- taxed income. How many people can afford to do that?

My doable strategy is to save 10% .
Since the employer is not cutting the tax, I think, I can put that amount in a different account. Many personal finance experts suggested to "pay yourself first". 

Many of my dental assistant friends said not to contribute to RRSP. The strategy is to get full OAS and CPP when you retire. I don't want to depend on the government fully.What if I want to retire before 65? That is why we need to use the TFSA. 
What you like to do? Maximize the TFSA first or RRSP first? I am still debating on it.

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