February 29, 2008, 7:00 am

Last Day For RRSP Contribution

by: The Financial Blogger    Category: RRSP
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Say what? You didn’t contribute to your RRSP account yet? Well you still have another 10-12 hours to do so. Today, most branches will open their doors all day in order to get as much RRSP contribution possible.

 

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What’s funny is that the RRSP campaign starts in late November in the financial industry but no matter how much effort they put into advertising, the best RRSP period is always the last week of February. So here are some tricks for a last minute contribution.

 

Be ready

Take a quick look at your budget, your credit cards statement and chequing account. You will have a better idea if you can contribute form a line of credit or your bank account. If not, you have the possibility of having an rrsp loan. It is still not too late to get approved for an rrsp loan. You can always go with the bank’s pre approved program which takes 10 minutes to complete.

If you don’t know if you can contribute or not, just bring your 2006 Notice of Assessment to your advisor. He will show you how to calculate it (it’s at the bottom of this document).

Don’t invest right away

Both you and your banker have no time to review your investment profile and your risk tolerance. The important part today is to get the money into an RRSP account. So you can simply deposit the money into your existing RRSP account and schedule another meeting in March in order to make a wise investment. You will avoid making stupid decisions and your banker will thank you to save him time on his busiest day of the year.

You still better off to schedule a meeting

If you get there last minute without a meeting, your advisor might not be able to find enough time to meet with you. If you call this morning and ask him, he will surely find a spot between two clients at one point in time. You could be surprise how flexible people can be at that period of the year.

Don’t skip your RRSP contribution

If you skip your RRSP contribution this year, you will miss a real good opportunity to invest when the markets are down. In addition to that, the power of compounding interest will loose a year in order to work out its magic.

Prepare yourself for next year

All right, you are last minute this year but this could be a different situation next year. While you are planning a second meeting with your advisor in order to invest your money, why don’t you ask him how to avoid this kind of stressing situation? He will surely has some trick to show you.

So pick up the phone, schedule a meeting and get some RRSP contribution today before it’s too late!

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image source : geocities.com

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