Registered Retirement Savings Plan
Enjoy tax benefits now and nurture your future with a Registered Retirement Savings Plan (RRSPs). RRSPs provide income tax breaks annually all while ensuring you can retire when and how you want.
Investing in RRSPs can be done in many ways – including term deposits, mutual funds, and cash. If you’re married or common law, consider a Spousal RRSP to reduce total taxable income by investing more in the name of the spouse who will most likely be in the lower bracket at retirement.
RRSPs vs TFSAs
|For retirement||For everything else|
|Contributions are deductible and reduce income for tax purposes||Contributions are not tax-deductible|
|Withdrawals are added to your income and taxed at current rates||Withdrawals and growth within your account are tax-free|
|Deadline for contributions around the end of February annually||No deadline for contributions|
If you need to boost your contribution but don’t have the funds, consider a RRSP specific Line Of Credit or Term Loan – with low interest rates and flexible repayment schedules you’ll be better off financially. Plus, you can use your increased tax return to pay it down!
To learn more about RRSPs check out our Fwd: articles, written by our own Copperfin Advisors.