Most investors today wait until tax return time to come up with a one lump sum RSP contribution to offset the tax payable from the previous calendar year. One of my strategies is as follows.
If you have dividend paying stocks in your non-registered portfolio, transfer the received dividends into your RSP account. By doing so these RSP contributions are tax deductible and also will make the burden of coming up with funds at tax time less stressful. Just think, you may have created a tax refund by doing so.
Smart investing is critical to deferring taxes. This strategy is one I utilize every time I receive a dividend payment.
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