February 20, 2022

Employers match workers' RRSP contributions

By Gordon Powers, Sympatico / MSN Finance

If your employer offers any kind of RRSP at work, be sure to get on board. While not as attractive as the guaranteed pension plans found in the public sector, they’re still generally a good deal.

Many employers support their employees’ retirement savings by matching their RRSP contributions – either up to a certain percentage of salary or as a flat amount – to an RRSP of their choice or to a company-sponsored group RRSP. And, if you're not taking advantage of that match, you’re losing out on free money.

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February 18, 2022

RRSPs just not right for everyone

By Gordon Powers, Sympatico / MSN Finance

Despite the big push to the RRSP deadline, some people will probably be better off by not investing in an RRSP at all. And, for many others, they’re likely a low priority.

If you're in a higher tax bracket, then making the maximum RRSP contribution as early as possible should pay off. But for more modest earners straining under the weight of consumer debt, or lower-income seniors approaching retirement, the case is not as clear.

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February 17, 2022

The mortgage versus RRSP debate roars on

By Gordon Powers, Sympatico / MSN Finance

One hot topic on the MSN message boards these days is whether people should pay down their mortgage or contribute to their RRSP before the deadline.

The truth is, there’s no definitive answer. That’s why so many people opt for making RRSP contributions as early as possible and then using the tax refund to reduce their debt.

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February 13, 2022

Why your kids need an RRSP

By Gordon Powers, Sympatico / MSN Finance

Hard times usually mean that more people are willing to work “under the table." But if you have children under the age of 18 that are making some money make sure they fess up and declare it.

Aside from getting the chance to discuss the pitfalls of the underground economy, you’ll also be helping them to actually save some tax – by investing in an RRSP.

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February 10, 2022

Juggling TFSA and RRSP assets

By Gordon Powers, Sympatico / MSN Finance

Much of the discussion on the new Tax Free Savings Account has centred on whether you’re better off going this route rather than investing in an RRSP. The truth is, you probably want to do both.

Here’s the simple equation. If your marginal tax rate is higher at the time of contribution than when you retire, an RRSP will be the better choice; if the reverse is true, a TFSA will be preferable. Here's the math.

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Gordon PowersGordon Powers

A long-time fund company executive, Gordon Powers now heads up the Affinity Group, a financial services consulting firm. Gordon was a personal finance columnist for the Globe & Mail for many years, has taught retirement planning...

Jason BucklandJason Buckland

The modern-day MC Hammer of money, Jason can often be seen spending cash that isn’t his with the efficiency of a Wilt Chamberlain first date. After cutting his teeth as a reporter for the Toronto Sun, he joined the MSN Money team with...