It's February, do you know where your RRSP contributions are?
As the chill of winter lingers, the warmth of planning for a secure future becomes even more inviting. Enter Registered Retirement Savings Plan (RRSP) contributions, casting its glow on the path toward a comfortable retirement. If you haven’t contributed already, this is your sign. February 29 is the deadline to contribute for the 2023 tax year and missing it could mean missing out on significant financial advantages.
Having an RRSP is more than just about saving for retirement; it’s about making money work for you. Contributing the maximum amount before the deadline provides a safety net for the golden years and opens doors to financial benefits come tax time.
One of the great things about RRSP contributions is that they are tax-deductible, which means they can lower your tax bill. This makes retirement saving even more attractive as it provides immediate tax relief while growing your retirement nest egg.
But the RRSP deadline isn’t the only big thing we’re paying attention to right now when it comes to investing. The markets have come into 2024 with a bang, hitting several all-time highs so far, and it's only February!
We also saw both the Bank of Canada and Federal Reserve hold interest rates steady. However, we’re still early in the year, and with probable rate changes on the horizon, it’s a good time to think about the diversification of your portfolio, ensuring it is aligned with your financial goals and considers the current economic landscape.
Diversification is a crucial aspect of investing . Spreading investments across different assets, such as stocks, bonds, and mutual funds, can offer a balance between risk and reward. With the current interest rate environment, fixed-income products like GICs have become popular, with their predictable returns that can withstand market fluctuations. But, each asset class has unique characteristics and benefits, providing various options to fit individual investment strategies and risk tolerance levels.
So as we approach the end of the month and plan out our investing strategies for the year, remember: it’s not just about making contributions but about making them count. Ensuring you contribute the maximum amount you are able to, taking advantage of tax benefits, and diversifying your investments are critical steps toward securing the future you want.
The rest of this newsletter is packed with content to help you get there, so happy reading! Your future self will thank you for the decisions you make today.
This month's recommended reads
Everything you need to know about RRSPs
If the upcoming deadline piqued your interest in RRSPs, we’ve got just the thing for you. Our new RRSP guide is now ready. Download it today to get an in-depth look at why this account is so popular with Canadians when it comes to saving for the future.
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Daily market commentaries, right to your inbox
With those recent all-time highs, keeping up with the markets is more important than ever. If you’re looking for a simple way to stay in the know, we’ve got some options for you. From daily Trading Central newsletters to weekly market insights, there’s something for every Qtrader.
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The information contained in this article was obtained from sources believed to be reliable; however, we cannot guarantee that it is accurate or complete. This material is for informational and educational purposes, and it is not intended to provide specific advice including, without limitation, investment, financial, tax or similar matters. Information, figures, and charts are summarized for illustrative purposes only and are subject to change without notice. All investments are subject to risk, including the possible loss of principal. Unless otherwise stated, mutual fund securities and cash balances are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer that insures deposits in credit unions.