Yes you can, contribute to a SPP with your RRSP room!
Did you know that you can contribute to a Saskatchewan Pension Plan (SPP) even if you don’t live in Saskatchewan? Yes (Canadian) folks, this is absolutely true.
Why SPP?
I like this plan because:
1) it is easy to join;
2) it is easy to contribute –
– annual maximum contribution is $2,500, which you can opt for monthly contributions using your credit card, and
– an annual additional transfer-in from an existing RRSP of up to $10,000;
3) their management expense at .96% for their balanced fund is decent and lower than most managed mutual funds;
4) their balanced fund return is decent. Average return over the 30-year period since inception is 8.1%, with a respectable 5-year average of 7.6%. Check out the full history here. (Of course, you need to keep in mind that these rates are not guaranteed going forward. They just show the plan’s past performance in investment returns.)
1) it is easy to join;
2) it is easy to contribute –
– annual maximum contribution is $2,500, which you can opt for monthly contributions using your credit card, and
– an annual additional transfer-in from an existing RRSP of up to $10,000;
3) their management expense at .96% for their balanced fund is decent and lower than most managed mutual funds;
4) their balanced fund return is decent. Average return over the 30-year period since inception is 8.1%, with a respectable 5-year average of 7.6%. Check out the full history here. (Of course, you need to keep in mind that these rates are not guaranteed going forward. They just show the plan’s past performance in investment returns.)
So give the SPP some serious consideration, especially if you are considering long term retirement investing.
And happy 2017 planning!