Normally by this time of year (Mid-February) the airwaves should be inundated with reminders to get your RRSPs bought for this year’s taxes, but this year, I have seen very little “pomp and fanfare” about the whole situation and assume the banks have figured out:
- People worried about their jobs are less likely to be worried about their retirement
- People without jobs aren’t going to buy RRSPs
- Banks have cut back on advertising due to their own financial shortcomings.
I may be wrong, but I certainly have not heard the normal crescendo of advertising campaigns about getting RRSPs bought before the end of February.
I am Worried About My Job
If you have money to put in your RRSP but are holding off, at least put your money into a TFSA to have it grow without taxes, but maybe think about putting it into an RRSP anyhow. The TFSA is a safe bet and is a good “holding place” for now.
If you have money you want to put into your RRSP now, just make sure it is in an investment that can be liquidated quickly (or does not have HUGE penalties for taking money out early) and the following scenario might occur:
- Put money into RRSP and get back tax money from last year (where you might have been in the highest tax bracket).
- Get laid off this year, and if at the end of the year you need to withdraw the money you might be in a lower tax bracket? Crunch the numbers but think about that possible scenario if it fits your life.
Got a weird inquiry from someone from MTV (claiming to be) about a show they are doing about laid off people and how they have to adapt their lifestyle now they aren’t making a big salary. They were looking for folks much younger than me, so I didn’t answer, but I could think of some possible titles:
- Dude where is my career?
- The E.I. (a parody on The O.C.)
- Dump’ed (as in job)
I had to smile reading the e-mail. Now if the CBC wants to talk to me, I am all over that!
My husband and I are fortunate enough to have jobs. We are thinking about RRSPs for the first time. We could take some money from savings and then set up monthly contributions. I’m not sure though that I completely understand RRSPs. Do you know of any blogger who has an introductory level post on the subject, or another source of basic information?
Look at any of the sites under the NCFBA Banner and you will find useful hints on personal finance in general and RRSPs in specific