But being blinded by the prospect of a tax refund is not the only mistake people make when it comes to RRSPs, financial advisers say. Here are 10 of the most common pitfalls. Waiting until the last minute. An RRSP is an investment, not just a deposit. Not having a financial plan.
People have company pension plans, government pension plans.
As well, some people may not need income from their RRSPs when they retire but want to ensure the money passes to their heirs in a tax-efficient way, she notes. It is important to have a cohesive plan that considers tax implications, estate and retirement planning. Lack of balance and diversification. This is your portfolio. This is not just once a year in February.