If you are thinking contributing to your RRSPs, here are a few things to consider before the Feb 29th deadline.
When do you want to retire?
It’s never too early to start planning for retirement. If you are in your 20’s you may want to opt for more aggressive funds because your investments will have more time to ride the ebbs and flows of the market. If you are in your 40’s, you may want to invest a larger portion of your savings in safer GICs.
RRSPs or pre paying your mortgage?
If you have some funds set aside, and you are wondering whether to put it into your investments or into a prepayment for your mortgage, talk to me and i can help you with the pros and cons.
Ask your financial advisor about staggering your contributions so that you can optimize your investments. Since your investments will be maturing each year, any upward swings will work in your favour. If there is interest rates drop, only some of your investments are exposed.
Remember that you don’t have to max out your contributions every year. If you are going to be in a higher earning bracket next year, it may make sense for you to save contribution room till it makes more financial sense for your situation.