Are you expecting a tax refund for this tax year? If so, what do you plan to do with the funds? While it is very tempting to spend the funds on a holiday, an e-bike or the latest phone, you may wish to consider other options.
The first priority should be to reduce or pay off your debt. Carrying credit card balances, for example, is paying unnecessary high monthly interest charges. Give us a call and ask about a loan to pay off or consolidate your debt.
Reinvesting some of the refund to your retirement savings is a great option. Contributing now to your RRSP is giving you a jump start on a potential tax refund next year. When you reinvest your refund, you start earning interest on your RRSP contribution right away versus only earning interest when you make a tax time contribution. Also consider paying yourself first by contributing monthly, of even a small amount, to your RRSP.
Make your money work for you. At CCEC, we can help. Investing your tax refund in an RRSP at CCEC is also an investment in your neighbours and local businesses. We have kept our members' money working in the community since we opened in 1976.
Give us a call first for your lending, borrowing and investment needs.