-- With the March 1 deadline quickly approaching, TD Waterhouse's
Patricia Lovett-Reid offers advice for Canadians who are still on the
sidelines when it comes to their RSP contribution --
To view a social media version of this release including video, please
TORONTO, Feb. 22 /CNW/ - Tax-deferred savings. A bigger tax refund. A
more comfortable retirement. Despite the many reasons to contribute to
your RSP before the March 1 deadline, many Canadians may still be on
the fence when it comes to deciding if they will make a contribution.
"Whether you are just starting your career, nearing retirement, or are
at any point in between, RSPs are essential for building the financial
foundation for a great retirement," says Patricia Lovett-Reid, Senior
Vice President, TD Waterhouse Canada Inc. "Making an RSP contribution
is the single greatest retirement-savings and tax-deferral tool
available to most Canadians. It's also one of the best ways to generate
a tax refund, which you can use to make a payment on your mortgage,
reduce your debt or contribute to a Tax-Free Savings Account."
If certain circumstances like existing debt or a lack of savings are
making you hesitate about whether you can make a contribution this
year, Lovett-Reid offers the following advice:
1. You have some (or a great deal of) debt.
You don't need to be debt-free to start saving for your future. If you
do a bit of both, paying down debt and saving for your retirement, you
will likely be better off in the long run.
2. You don't have money to make a contribution.
Consider borrowing to invest in your future. Borrowing to contribute to
RSPs can be a good choice financially as it increases retirement
savings and your investments will grow tax-deferred. Speak with a
financial advisor to see if this strategy is right for you: there are
RSP loans available, and you can also use a line of credit to make your
3. It's almost the deadline and you don't have much money set aside.
This year make a contribution (no matter how small) before the
deadline. But next year, don't wait until the last minute. Take advantage of a pre-authorized purchase plan and see how regular
investments can compound over time, allowing your retirement savings to
4. Even if you contribute throughout the year, it won't add up to a
Every dollar counts: even if you don't have much discretionary income,
it's still worth contributing. Through the power of compound interest
you may have generated more savings than you expect when it's time to
stop working. And don't forget: as your income or expenses change,
it's essential to adjust your savings.
5. You don't know exactly how you want to invest your RSP contribution.
Contribute now and decide what to invest in later. Temporarily park
your money in a cashable GIC or a daily interest savings account before
the deadline, and then take the time to decide exactly what you want to
do with it. Don't forfeit the tax incentive by waiting for next year
simply because you can't decide how to invest.
"Speak to a financial advisor you trust about how you can build a
balanced investment portfolio that gives you the rate of return you
need to achieve true financial success," says Lovett-Reid. "You deserve
On Friday, February 25, Lovett-Reid will be tweeting tips and answering
questions about RSPs during @TD_Canada #RSPFridays on Twitter. To view
videos containing advice for planning your retirement and contributing
to your RSPs, visit TD's YouTube page at http://www.youtube.com/user/TDCanada.
For more information on planning for your retirement visit www.tdretirement.com.
About TD Bank Group
The Toronto-Dominion Bank and its subsidiaries are collectively known as
TD Bank Group (TD or the Bank). TD is the sixth largest bank in North
America by branches and serves approximately 19 million customers in
four key businesses operating in a number of locations in key financial
centres around the globe: Canadian Personal and Commercial Banking,
including TD Canada Trust and TD Insurance; Wealth Management,
including TD Waterhouse and an investment in TD Ameritrade; U.S.
Personal and Commercial Banking, including TD Bank, America's Most
Convenient Bank; and Wholesale Banking, including TD Securities. TD
also ranks among the world's leading online financial services firms,
with more than 6 million online customers. TD had CDN$620 billion in
assets on October 31, 2010. The Toronto-Dominion Bank trades under the
symbol "TD" on the Toronto and New York Stock Exchanges.
TD Waterhouse represents the products and services offered by TD
Waterhouse Canada Inc. (Member of the Canadian Investor Protection
Fund), TD Waterhouse Private Investment Counsel Inc., TD Waterhouse
Insurance Services Inc., TD Waterhouse Private Banking (offered by The
Toronto-Dominion Bank) and TD Waterhouse Private Trust (offered by The
Canada Trust Company).
SOURCE TD Waterhouse Group, Inc.
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