24 Feb 2014
By Sheryl Smolkin
RRSP season is almost over for another year so remember to make your Saskatchewan Pension Plan contribution by Monday, March 3, 2014 in order to get a tax deduction on your 2013 income tax return. But the need to spend carefully and save regularly is an important part of everyday living.
On retirehappy.ca, Jim Yih reports that 7 Causes of Financial Stress including high debt levels, low savings rates and increasingly complex financial markets are keeping many people up at night.
In The Insanity of “RRSP Season” Young and Thrifty blogger Kyle says anyone with a basic handle on grade 9 math ought to know that making periodic contributions to a registered plan (either a TFSA or an RRSP) is a better choice than procrastinating until the last minute and then trying to scratch together the money to fit in under an arbitrary deadline.
Blogger Krystal Yee on givemebackmyfivebucks.com says she will have to dip into her emergency fund and suspend TFSA and RRSP payments for some time because she was recently laid off. But 44 comments from her fans leave no doubt that she will land another great gig before long.
The pros and cons of withdrawing RRSP contributions are explored once again by Tom Drake on the Canadian Finance Blog. While the lost opportunity cost of taking out money and losing RRSP room are important, he acknowledges that in some emergencies RRSP withdrawals may be unavoidable. The good news is that if you need money because you lost your job, you will pay taxes on the money at a lower rate.
Many of you may be aiming for early retirement as early as age 55. However Dave Dineen on Brighter Life reminds readers that some sources of retirement income don’t kick in for another five years or more so you need to have a plan to bridge the gap or early retirement could be a financial nightmare.
And on Boomer & Echo Robb Engen identifies 6 Fees Worth Paying and notes that trying to avoid fees can sometimes be false economy. For example, the return on investment if you buy a Costco card, use an annual fee credit card or join the CAA can easily exceed the initial amount you have to pay.
Do you follow blogs with terrific ideas for saving money that haven’t been mentioned in our weekly “Best from the blogosphere. Share the information with us on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.