Personal Investor: Boost your RRSP contribution with your refund
If you are looking for ways to increase your retirement savings, consider investing your tax refund early. If you add your refund before the March 1st cut-off, you will generate further tax savings provided the principal is paid back within a few months. This can be done by borrowing the money for a couple of months through a home-equity line of credit, and provided the money is paid back quickly then the small amount of interest will outweigh the additional tax savings on your return. There are plenty of online calculators available to help you with the calculations or speak to an accountant to determine the best way to do this for your situation.
“If you’re scrambling to put together a registered retirement savings plan (RRSP) contribution before the March 1 deadline, there’s a way to boost it by nearly 40 per cent by contributing the refund.”