I always like the year end season. Things are winding down, people are clearing their leaves and taking their well-deserved holidays, kids are out of school etc. Well, there’s even less traffic on the roads.
This is also the period when I am topping up my SRS. I always tell myself to spread it out across the whole year but procrastination always set in.
Well, December is upon us. And the SRS cut-off for YA 2020 is 31 December 2019. I will not recommend waiting till the very last minute. You never know what may crop up.
As per previous years, I am going to top up to the limit of $15,300. It’s painful to see so much $ locked up till the age of 62 but short term pain for long term gain. I am hitting the marginal tax bracket of 15% so that’s a cool saving of almost $2,300 in tax bill. Think of it as an immediate return of 15%. I don’t think it’s easy to get such return in the market.
Besides saving some tax, I will also encourage the more fortunate among us (myself included) to consider donating to some good causes. You will get 2.5 times tax deduction as well as gratitude from the beneficiaries. I always believe giving is better than receiving.
Well, the end of the year is also a good time for reflection and practising gratitude for both the good and the bad that have occurred over the past year. There’s always a lesson to be learnt. Don’t waste it.
Enjoy your holidays!