It is a great opportunity for you if your employer has set up a group RRSP. You must enroll in it as a step towards your financial future. The Majdoub Group financial planners in Ottawa share why it is an amazing idea to invest in a group retirement savings plan.
1. You do not have to follow strict financial discipline
Since your contributions towards group RRSP are deducted from your wages, you do not have to worry about putting it into a savings or investment account. There are times when we are hard pressed and we may be tempted to postpone an investment to the next week or month. Group RRSP takes care of that. Efficiency and discipline come in-built with this plan, say experts at Majdoub Financial, Ontario. You can invest additional amounts if you so wish.
2. You get tax deduction
All RRSP contributions are deducted from your taxable income reducing your tax liability. You get tax refunds in every paycheck! Lesser taxable income may also make you eligible for certain tax credits which would not apply if your taxable income was higher. That makes group RRSP a really smart move.
3. Your employer helps
Many employers choose to top up your RRSP contribution as an incentive or policy. Find out what is your employer’s policy. Any such contributions made by your employer remain in your account even if you change jobs or stop working. If your employer does not have a group Registered Retirement Savings Plan, ask them to do it with help from Majdoub Financial Planners at Ottawa.
4. Dollar Cost Average
While one doesn’t have control on the cost of units from month to month, doing your group contribution gives you the benefit to average on the unit cost rather than buying it at a specific time.