I don't have money for RRSPs!

So if you watch any TV or read any paper they will mention RRSPs at this time of year. You think, "wow, it would be great to save money for an RRSP, but I have all this other stuff to pay for!" How do people do it all you wonder.

There is an easy way to invest money in to RRSPs. It is called a PAC (Pre-Authorized Credit) plan. Libro would take a set amount of money out of your account every week or month - what ever works best for your budget. If a little goes out of your account on a monthly basis it's much easier to make it work. Out of sight out of mind - AND you really don't have to do anything beyond that!

This play will help you out in the long run! If you contribute $50 on a monthly basis for 40 years with compound interest it will build up to $74,780, based on an average 5.0% return. Pretty good little retirement pot to show for a little bit every month. Use this calculator to see how much you can save for retirement!

The next benefit is that RRSP contributions are a tax credit for your income tax. This will hopefully help you get a tax refund. This tax refund can be used to pay down your debt faster, helping you out in all areas of finance.

If you have more questions about how an RRSP contribution will help you get a tax refund, or you're ready to set up a PAC, please contact me!