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You know by now that the earlier you start contributing to your RRSP, the more your savings will grow. (In fact, you can almost double your savings if you start contributing in your 20s, even if only a small amount.) But as we also know, the best laid plans...
As we approach the RRSP cut-off date (February 29th), what’s a smart – but financially-strapped – girl to do if her financial situation does not allow her to contribute before the cut-off date?
The solution might just be a loan.
How does a loan for an RRSP work?
An RRSP loan works much the same way any loan works, except that you are borrowing money to invest. Here are the initial steps to take...
But are RRSP loans for everyone?
No, nothing is for everyone! You have to consider your unique financial needs and really sit down with your advisor to map out a plan.
For those who are the right candidates, however, RRSP loans may be just what the retirement doctor ordered to either get your savings off to a great start or to give ‘em the boost they need. It just takes the right mix of planning and self-discipline to pay that loan off! (And since we’re into a new year, we know you have that willpower thing in spades, right? Of course!)
Ready to take the plunge for your retirement?
Learn more about Standard Life & how when it comes to retirement ‘saving is really just planning’ →
(Remember, 2012 is a leap year, so the cut-off date for RRSP contributions is February 29th, 2012 at 11:59 EST.)
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