The right time to contribute to an RRSP?

If several benefit usually of their tax refund to contribute to their RRSP, the uncertainty caused by the pandemic of COVID-19 the reluctant this year.

“It is sure that this time, before disposing of his money, he must think twice,” said Éric Lebel, partner at Raymond Chabot and licensed trustee in insolvency, in an interview with TVA News Sunday.

Given that the income of several have declined lately, it is necessary to ensure they have enough money to cover daily expenses before you set it aside.

Mr. Lebel suggested to those who have the necessary funds to contribute to an RRSP to keep it in cash.

“If you have the money, buy an RRSP, at worst, keep the cash and if you want to invest, consult your financial advisor”, he advises.

The latter explains that the investment in the financial markets demands a high tolerance for risk, something that can be difficult for many in this period of uncertainty.

“Before investing in the financial markets in stocks, bonds or GIC, it’s all a matter of risk tolerance. These days, it is known that the risk has increased a lot, personally, especially because of our work,” says Mr. Lebel.

According to him, it is necessary, therefore, to rely on their own level of risk tolerance and cash flow before making the decision to contribute.

“You buy an RRSP, you take advantage of the tax-side, but you are not forced to invest in the financial markets. Depending on your tolerance for risk,” says Éric Lebel, adding that it is important to consult with its investment advisor to make the best decision.

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