Set your RRSP clock forward

WHAT WOULD HAPPEN if the government moved the Registered Retirement Savings Plan (RRSP) contribution deadline up to November or December? You would probably find a way to top up your regular RRSP contributions sooner.

Create your own virtual RRSP deadline this year. Try to top up your regular RRSP contributions with a lump-sum deposit before the end of the year. You might be able to use extra money from a bonus, profit-sharing payment, job promotion, property sale, or inheritance to come up with the cash.

Topping up your contribution in November or December makes it easier for you to increase your annual deposit and lets your RRSP earnings grow on a tax-deferred basis for a longer period of time.

If you maximize this year's contribution by year-end, your regular contributions in January can go towards your RRSP for the current year, giving you a potentially valuable head start.

By setting your RRSP clock forward now, you can build a bigger RRSP over the long term - and potentially move your retirement date forward too.