Don’t Hit Snooze: An RRSP Reminder | Mackenzie Investments

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Don't Hit Snooze: An RRSP Reminder

Eat your vegetables, get more sleep and contribute to your RRSP in 2017. There, you've got the reminders.

Each reminder is healthy and each has a payoff, including one financial payoff.

Contributing to your RRSP can save you some tax in 2017 (short-term payoff) and help fund your retirement (long-term payoff). It's a payoff that spans time.

  • Three main advantages of contributing to an RRSP:
    1. Contributions are tax deductible
    2. Earnings in an RRSP are sheltered from tax
    3. Taxes on money in RRSPs are deferred until you make withdrawals
  • Contribution deadline: March 1, 2018
  • Annual contribution limit for 2017 is $26,010
  • If you're in a pension plan, your pension adjustment will reduce your contribution amount
  • Your RRSP deduction limit is reported on your Notice of Assessment from Canada Revenue Agency

Reminding you to contribute to your RRSP is not just an "eat your broccoli" message – though you're encouraged to eat more vegetables – it is smart money management.

CTRL + N: RRSP Reminder

Put an RRSP reminder in your email calendar and crank up the alert volume. Create a Reminder in your mobile phone. Add a New Event to your phone calendar. Put an RRSP sticky note on your desktop(s). Put a sticky note on top of your desk(s). Update your social media anniversaries so friends and family can encourage you to contribute.

Tie a piece of string around your finger. Then take a photo of the string and tweet it to your financial advisor.

Don't snooze this reminder. It'll pop up again in five minutes.

Take the payoff, make an RRSP contribution for the 2017 tax year. It will make you feel better.

The (old school) clock is ticking. You've been reminded.

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. 

The content of this document (including facts, views, opinions, recommendations, descriptions of or references to, products or securities) is not to be used or construed as investment advice, as an offer to sell or the solicitation of an offer to buy, or an endorsement, recommendation or sponsorship of any entity or security cited. Although we endeavour to ensure its accuracy and completeness, we assume no responsibility for any reliance upon it. 

This should not be construed to be legal or tax advice, as each client’s situation is different. Please consult your own legal and tax advisor.

Redemption of units or shares. At any time, you can redeem your mutual fund units or shares at the current net asset value (NAV) per unit/share. You can mail or directly deliver your redemption request (which must be in writing) to your financial advisor or Mackenzie. We may ask that your signature be guaranteed by a bank, trust company or a member of a recognized stock exchange, or be otherwise guaranteed to Mackenzie’s satisfaction along with any other documents that Mackenzie may reasonably require. If pre-approval has been obtained, you may phone in a redemption request up to a certain amount. If we do not receive all necessary documents within 10 days, your redemption request will be cancelled. Any loss is payable by you or your dealer. Payment for your units or shares will be made no later than two business days after receipt by Mackenzie of the completed sale documents.