RRSP season is here so I wanted to share a useful but not well-known tip.
I love to collect frequent flyer miles (I was able to go to New York and London this winter with my family just on miles).
Did you know that the Saskatchewan Pension Plan accepts credit card payments?You can join the Saskatchewan Pension Plan (SPP), even if you don’t live in this province, and deposit up to $2,500 a year.
You can choose between a balanced portfolio of stocks and bonds and a short-term fund (less volatile for older people). Administration costs are less than half of that charged by mutual funds.
Once you reach retirement, you can transfer your portfolio into a registered retirement income fund (RRIF) or convert it to an annuity to get a regular income stream for life.
I heard about this in Derek Foster’s new book, The Worried Boomer: No Pension? Not Wealthy? Here’s Your Plan.
With the RRSP reducing your payable tax, you can use that money to put towards any outstanding debt.