Procrastinators, be warned: RRSP contribution deadline looms

OTTAWA -- If you haven't made a contribution to your RRSP account so far this year, investment advisers say you are not alone.

See Full Article

But while the volatile ride the Toronto Stock Exchange has taken in recent months may have given reason to procrastinate, the deadline is just around the corner.

Linda MacKay, senior vice-president for personal savings and investing at TD Canada Trust, said the stock market fluctuations in recent months may have some pondering what's the right thing to do.

But, she said, the earlier people start saving for retirement, the better.

"It is incredibly difficult to time the market and typically if you do try to you're going to probably miss some of the best times to buy," MacKay said.

"People who are nervous about the market tend to hit the worst days and miss the best days. We know over the long run if you have a good plan and you're focused on your long-term goals then staying invested in the right investments for your risk tolerance is a better strategy."

For people who want to make an RRSP deduction when they file their tax return for 2015, they have to make their contribution by Monday.

Frank Bilodeau, vice-president for the Ottawa and West Quebec district at Scotiabank, acknowledged that everyone faces demands on their time every day. But he urges people not to let opportunity pass.

He says if people don't have time to meet with a financial adviser, they may want to consider making the contribution, but parking it in a high-interest saving account for a week or two until they can. But it is important to make the time to follow up with a financial adviser and invest the money based on a financial plan.

"That followup meeting is really worthwhile," Bilodeau said.

A poll done for CIBC found that half of Canadians said they won't be contributing to their RRSP this year.

When asked why, 17 per cent said they preferred other investment options such as tax-free saving accounts, but 41 per cent said they didn't have the money and 14 per cent said they had other financial priorities.

The poll done for CIBC was based on an online survey of 1,501 panellists done on Feb. 9 and 10. The polling industry's professional body, the Marketing Research and Intelligence Association, says online surveys cannot be assigned a margin of error because they do not randomly sample the population.

Helene Marquis, regional director for tax and estate planning at CIBC Private Wealth, said setting up a proper investment plan even if people are making a last-minute RRSP contribution is key.

Once that's done, set up a plan for next year, she says.

"Instead of procrastinating once again and waiting until the next deadline to contribute next year, the best thing maybe is to create a savings plan on a regular instalment basis," she said.

"When you put your money in a saving plan by regular instalment from your paycheque or whatever you want, at the end of the day you forget it and becomes part of your cost of living."



Advertisements

Latest Economic News

  • Ivanka Trump ordered to testify in dispute with shoe company

    Economic CTV News
    NEW YORK -- Ivanka Trump must testify in a dispute with an Italian shoemaker over one of her company's shoe designs, a judge said Friday. U.S. District Judge Katherine Forrest rejected a request by the senior White House aide's lawyers that she be blocked from submitting to a deposition in the trademark infringement lawsuit brought by Aquazzura Italia SRL against her and her company IT Collection LLC. Source
  • Cooling measures already affecting hot Toronto housing market: survey

    Economic CTV News
    The recent intervention by the Ontario government to cool the Toronto-area’s hot housing market is already having an impact on sellers and buyers plans for the year, according to a new poll. At the end of April, Ont. Source
  • Why is the American teen summer job disappearing? [Video]

    Economic Toronto Sun
    WASHINGTON — It was at Oregon’s Timberline Lodge, later known as a setting in the horror movie “The Shining,” where Patrick Doyle earned his first real paycheque. He was a busboy. The job didn’t pay much. But Doyle quickly learned lessons that served him for years as he rose to become the CEO of Domino’s, the pizza delivery giant: Source
  • Waiting for a Canadian housing crash? Warren Buffet bets against it buying 38% stake in Home Capital Group Inc.

    Economic Toronto Sun
    Warren Buffett's deal to back Home Capital Group Inc. does more than support a struggling mortgage lender -- it's a vote of confidence for a housing market that everyone from investors to global ratings companies say is a bubble ready to burst. Source
  • CIBC looks to generate quarter of earnings from U.S.

    Economic CBC News
    CIBC closed its acquisition of Chicago-based PrivateBancorp on Friday, securing its foothold in the U.S. where CEO Victor Dodig said the bank hopes to one day generate a quarter of its earnings. The Canadian bank now earns roughly five per cent of its profits in the U.S. Source
  • CIBC closes acquisition of U.S.-based PrivateBancorp

    Economic CTV News
    TORONTO -- CIBC closed its acquisition of Chicago-based PrivateBancorp on Friday, securing its foothold in the U.S. where CEO Victor Dodig said the bank hopes to one day generate a quarter of its earnings. The Canadian bank (TSX:CM) now earns roughly five per cent of its profits in the U.S. Source
  • Consumer demand for debt as high as it has ever been, Equifax says

    Economic CBC News
    Canadians' appetite for debt is as insatiable as ever, a new report from credit monitoring firm Equifax says. Equifax calculates that Canadian consumers owed $1.729 trillion at the end of the first quarter, an increase of 6.9 per cent in a year. Source
  • Sears Canada store closures expected to have little impact on RioCan

    Economic CTV News
    NEW YORK -- Sears is closing another 20 stores as the ailing retailer tries to turn around its business. Real estate investment trust Seritage, which owns the 20 real estate properties, confirmed the closings-- 18 Sears stores and two Kmart stores -- in a government filing Friday. Source
  • Ontario rent increases capped at 1.8 per cent next year

    Economic CTV News
    TORONTO - Landlords in Ontario will be able to increase rents up to 1.8 per cent next year, as rent controls are expanded under the Liberal government's housing plan. The annual rent increase guideline is the maximum amount a landlord can boost a tenant's rent without needing the approval of the Landlord and Tenant Board. Source
  • Norsat International investors approve takeover bid from Chinese firm

    Economic CBC News
    ?Norsat International Inc. says its securityholders have voted to approve a controversial takeover of the company by Chinese company Hytera Communications Co. Ltd. The Canadian satellite communications firm says its securityholders voted 72.53 per cent in favour of the offer of $11.50 US per share. Source