Personal Retirement & Savings:
Registered Retirement Savings Plan (RRSP)
Registered Retirement Savings Plans (RRSPs) are an excellent investment option, allowing you to grow your retirement nest egg as well as enjoy tax savings today. Registered Retirement Savings Plans are a key financial priority, but finding the extra money to invest annually can sometimes be problematic.
Why do I need a retirement plan?
The sooner you start investing in a Registered Retirement Savings Plan, the longer your money can work for you now and in your retirement.
- If you retire early, you’re spending your savings over more years
- While government programs provide basic income and benefits, you may find that it isn’t enough to provide for the lifestyle you desire
- To prepare for the unexpected, like rising health care costs
- Your employee benefits may continue once you retire, but sometimes not. Consult your employer.
Once you think your plan through and know what you and your loved ones require, it’s much easier to take those first steps toward retirement. In putting your personalized plan together, keep these points in mind:
- Know what you wish to do with your time once retired
- Take stock not only of what you have, but of what you will need during this time
- Develop a secure and reliable income base for your retirement years, allowing you flexible access to your money
- Ensure your nest egg is protected against inflation, cost of health care, market downturns, etc.
- Always prepare for the unexpected
- Create a realistic plan so that you can meet your outlined goals
What about taxes?
Registered Retirement Savings Plan contributions have positive tax impacts as they reduce the amount of income tax you have to pay. In many cases, Registered Retirement Savings Plan contributions result in a tax refund. Contributions you make to your Registered Retirement Savings Plan are tax deductible. Investments within a Registered Retirement Savings Plan grow without being taxed, but at retirement, your Registered Retirement Savings Plan is turned into income, which is taxable.
Consider Registered Retirement Savings Plans Loans
Take advantage of the low cost of borrowing now to provide yourself with a larger investment portfolio at retirement. When your Registered Retirement Savings Plan contributions lead to a tax refund, it can be used to partially repay your loan, helping to lower the cost of borrowing and helping you stay on track with your retirement plan.
Get the most out of your retirement by creating a sound financial plan for your future!