People are often skeptical at the mention of “free money.” Pop culture has taught us that there’s always a catch. When the Joker dumped $20-million in cash on a crowd of parade goers in Tim Burton’s Batman, that windfall came with a side of hot air balloons spewing poisonous gas.
But here are five examples of when you may be passing up free money and we promise, this isn’t just a load of hot air.
Failing to enroll in your company’s retirement plan if they match contributions. When you contribute to your employer’s retirement plan, your company may match you up to a certain percentage. Let’s say your company matches your contributions for every dollar that you contribute to your group RRSP up to 6% of your pay. So if you contribute 6% of your $1,000 paycheque or $60, the company gives you an extra $60 for free.
“There’s usually a period of time that you have to be employed before you opt in. The problem is that nobody reminds you to opt in,” says Scott Plaskett, a certified financial advisor and CEO of Ironshield Financial Planning. “Or maybe they’ve opted-in but they never took a look at the investments and their money is just sitting in cash.”
Contact your human resources department to inquire about your employer’s benefits.
Setting up a Registered Education Savings Plan for your child and then not taking advantage of the government grants. According to an RBC survey, two-thirds of parents have already set up RESPs for their children but they are not making the maximum contributions. You can receive up to $500 a year in federal government grants when you contribute the $2,500 annual maximum (the federal government matches 20% of the first $2,500 contributed each year for eligible children) to a lifetime limit of $7,200. Set aside some time to put a financial plan in place. “We make time for what’s important to us,” Mr. Plaskett says.
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