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).
[box type=”alert”]The #1 way to collect is with a credit card if you do not fly much. [/box]
Did you know that the Saskatchewan Pension Plan accepts credit card payments?
[highlight]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.[/highlight]
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.