RRSP season has arrived, and you may be wondering if anything’s changed with the pandemic. No need to fret – we have two quick tips that can help you get more out of your retirement savings.
- Automate your contributions
If you’re not already set up for monthly contributions in the Common Good Plan, grow your savings faster by making regular, automatic RRSP contributions. Then you won’t have to worry about making a last-minute lump sum contribution before next year’s deadline.
Also, automatic savings evens out the impact of market ups and downs. This is called “dollar cost averaging.” If you’re investing regularly, this discipline helps you avoid very common mistakes investors make in trying to time the market.
Don’t forget the TFSA
With 2021 underway, you can contribute another $6,000 to your TFSA. Many people don’t think to use TFSAs for retirement, but every dollar of retirement income you withdraw from a TFSA is 100% tax-free. And if it looks like you might be getting a tax refund in the spring, you can consider putting it to work in your TFSA in the Common Good Plan.
Have questions about contributing to the Common Good Plan? You can book a consultation with one of our specialists.