RRSP – LOOK AHEAD IF YOU WANT A COMFORTABLE RETIREMENT, YOU HAVE TO START PLANNING NOW!
The registered retirement savings plan (RRSP) is specially designed to provide you with retirement income. It is advantageous because your contributions entitle you to a tax deduction and generate investment income that is sheltered from income tax.
When you withdraw your funds at retirement, they become taxable. However, the taxation rate applicable is generally lower because your retirement income is usually lower, too.
The amount you may invest in your RRSP this year is determined on the basis of the income you earned last year. You may contribute up to 18% of that income, less the pension adjustment, up to a maximum of $22,000.
- Contribute early
- Make monthly contributions
- Maximize your returns by diversifying your investment
- Ask about our RRSP line of credit
HOW TO MAXIMIZE YOUR RRSPS
- Contributing to an RRSP is doubly advantageous—your contributions entitle you to tax deductions, and your investment income (interest, dividends and capital gains) grows in a tax shelter until you withdraw the amounts accumulated.
- The sooner you begin to contribute, the more advantageous Your RRSP. Your investment income will build up over time to provide you with additional resources at retirement.
- Contribute regularly. It is easier to make a small contribution every month than to contribute a larger amount at the end of the year. In addition, if you make your contributions at the beginning of the year, your money will start working for you sooner, and your RRSP will grow more quickly.
- Contribute every year. Failing to contribute for a year may deprive you of considerable investment income generated by interest or a compound return.
- Invest the maximum allowable amount to obtain advantageous tax savings.