It’s that time of year again when banks, credit unions and investment advisors are talking about RSP’s. There’s nothing like a deadline to prompt people to action.

How can a RSP help you?

• Saving for your retirement is a good thing to do – even though it may seem like ages in the future, starting sooner = more time for your money to grow
• While the savings are sheltered in a RSP, you do not pay tax on the investment or growth
• The impact on your income tax return means less tax paid now
• There are programs that allow you to remove RSP savings and use them towards the down payment on your first home or to return to school (review the program details to understand how it works)
• If you find yourself in a tough situation with no other options, savings are savings and they can be used to bail you out

Key points to remember:

• There is a limit to the amount you can put in a RSP – Check your income tax assessment for details
• The investment deadline to use a RSP savings tax receipt against your 2013 taxes is March 3, 2014
• Understand what you are investing your savings in – if you don’t have time to figure it out now, invest your RSP into something that allows you to change it later without restrictions or fees
• If you are married or common law, work together to learn how to structure your savings to your best advantage, now and in the future

If you’re able to set up a regular savings plan, you won’t have to worry about the deadline and invest in the busy season – much less hassle.