What’s In Your Financial Garage?
May is time of revitalization for your home, closets and garage. So why not freshen up your finances too?
If, like many Canadians, you rushed to get your RRPS contribution in before the March 1st deadline earlier this year, you’re not alone. But, do you know what’s actually invested in your RRSP? Or, your TFSA for that matter?
I hear from so many people that wrongly think their RRPS or TFSA is the investment. It’s not. It’s a tax shelter.
Think of your RRSP (and TFSA) as a garage. You still need to put cars in your garage like stocks, bonds, GICs, mutual funds, ETFs and more. When your cars are parked in the RRSP garage, they grow tax deferred and new contributions receive a tax deduction. When you put cars in your TFSA garage, they truly grow tax free.
If you’re unsure what’s in your RRSP or TFSA, what fees you’re paying on your investments or, if the risk is too high or low, it’s time to call up your banker, Certified Financial Planner or to have a careful look at what you’re invested in, so your hard earned dollars can start working for you.
I discussed this topic recently with Dallas Flexhaug on Global News Calgary. Watch the video here:
This is the second in a four-part series. For part one, not falling prey to: pre-spending your tax refund – read it here.
Check back next week when I’ll walk you through why you should check your credit report, what your credit score means and ways to improve it.