Maximize your RRSP contributions

Contribute early
RRSPs are easy to understand: they put time on your side. The longer your money stays in this tax shelter, the more you'll have at your retirement.

Contribute early in the year
If you have a regular income, contributing to your RRSP by regular instalments is THE most effective, flexible way to build your portfolio. Your investment starts bearing fruit from the first day, and your earnings accumulate more rapidly than if you only contributed once a year.

Contribute your maximum
For any given tax year, the law allows you to contribute an amount equal to 18% of your income from the previous year. Always try to contribute your maximum.

Contribute regularly
When you don't contribute to your RRSP for even only one year, you could be depriving yourself of a lot of money when you retire. For example:

1. Calculation based on a diversified portfolio with an effective rate of 6.5% compounded annually.