There is a lot of activity this time of the year and that keeps us very busy. Another deadline is looming, and, just to confuse everyone, the deadline is round about the end of February, the very beginning of March, the actual date can change every year, like a moving target.
This deadline is for money you want to use to go towards your future (you would like to retire some day, wouldn’t you?) and, rather than free money (as discussed in the last winter post), these contributions help you keep more of your money, for yourself.
It’s all for you actually. You see, how this works is, you put money away for your future into something called a Registered Retirement Savings Plan (RRSP) and then, you pay less to the government in income taxes, it's as simple as that. Sounds like a good idea, don’t you think!
So, it’s not free money where the government gives you something, it’s more money they would have taken from you but they won’t, this time, because, they don’t want to have to take care of you, later on in life. So, this is considered to be incentive so you’ll take care of yourself. Isn't that lovely.
So, don't forget this years deadline is Monday March 1st. Hopefully, you are somewhat oblivious to this date because you've been dollar cost averaging into your investments throughout the year! More on DCA in a later posting. A very wise move, DCA!
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