Planning RRSP

Reassess your goals
Start planning next year's RRSP contribution now. But first, it's time to do some serious financial planning. Spring and fall are good times to reassess your financial goals and look at the asset mix of your entire portfolio. You may have more time, and so do financial planners now that they're not rushed off their feet by RRSP queries. As a qualified financial advisor, I will be able to assess your "money personality" and show you how to gain control of your savings.

Start saving
Once you have set your goals, you can begin saving toward a full RRSP contribution. It's difficult to find $2,000 in the first two months of the year, for example, but it's easier to put aside $200 a month for 10 months. If your income is irregular and you expect a bonus or commission, figure those into the equation. Pay yourself first, before you spend on anything else. Our chart shows how much further ahead you are if you make an RRSP contribution of $100 a month, rather than making a $1,200 lump sum payment once a year.

Year 6 per cent 10 per cent
กก Monthly Annual Monthly Annual
5 6,982  5,512 7,717 6,033
10 16,326 14,479 20,146 17,653
15 28,831 26,479 40,162 36,367
20 45,565 42,538 72,399 66,507
25 67,958 64,028 124,316 115,047
30 97,926 92,786 207,929 193,220
35 138,029 131,272 342,589 319,120
40 191,696 182,774 559,461 521,882
45 263,515 251,695 908,734 848,433
50 359,625 343,928 1,471,243 1,374,346

Assumes monthly deposits made on the first of each month; annual deposits made at the end of February.

Note: Any reference to Investments, Investment Planning, Financial Planning, Markets, RRSPs, RRIFs, Locked in accounts, Non-registered accounts or RESPs refer to Segregated Funds.