The RRSP deadline is fast approaching but you still have time to make a smart decision.
Scott Ward, financial adviser with Edward Jones, and Mark Coutts, a certified financial planner with Sun Life Financial, offer the following tips:
Don’t fly blind: Make sure you look at your notice of assessment so you know exactly how much contribution room you have so that you don’t put in too little (and lose an opportunity) or too much (and suffer penalties).
Stick to what works: The last minute is not the right time to try untested strategies or investments.
“It’s important not to get swayed off your plan — stick with your original strategy,” Coutts said.
Don’t make rash decisions: Buying the wrong investments with your RRSP money just to “get it in” can lead to bad choices.
“If you’re in a rush, put the money in, but don’t lock it into anything right away. Sit down with your adviser and make the appropriate long-term decision when you have the time,” Ward said.
Leave breathing room: Don’t leave every detail until the last minute, since there will be others vying for your adviser’s time.
“It’s like Christmas shopping — there’ll be a lineup,” Ward said.