With the RRSP contribution deadline fast approaching, CIBC provides tips to help guide Canadian investors' retirement planning
TORONTO, Feb. 6, 2014 /CNW/ - CIBC (TSX: CM) (NYSE: CM) - Too many Canadians are leaving important retirement savings and planning strategies to the last minute as they rush to make a Registered Retirement Savings Plan contribution before the March 3 deadline, says Jamie Golombek, Managing Director of Tax & Estate Planning at CIBC Wealth Advisory Services.
"When you combine the tax deduction for the amount you contribute with the fact that you don't have to pay tax on the accumulated investment income, most Canadians should have RRSPs," says Mr. Golombek. "But many Canadians aren't taking full advantage of the benefits RRSPs offer."
Mr. Golombek's new report, Getting the most out of your RRSP, focuses on the importance of Canadians taking the time to look at all of the benefits available from their RRSP throughout the entire year.To get the maximum benefit from an RRSP, Mr. Golombek recommends five simple tips in his report:
- Just Do It -- Make an RRSP contribution
- Be Timely -- Choose when to claim the deduction for your RRSP contribution
- Stick With It -- Leave funds in an RRSP
- Cover Your Bases-- Designate beneficiaries
- Plan for Redemption -- Plan for RRSP conversion prior to age 71