For many Canadians, they know that contributing to an RRSP is something they're supposed to do, but they're not sure exactly how it works or why they should contribute.
Every year, especially around February, you start to see ads for Registered Retirement Savings Plans (RRSPs). For many Canadians, they know that contributing to an RRSP is something they're supposed to do, but they're not sure exactly how they work or why they should contribute.
Basically, an RRSP is a Federal government savings plan that allows you to defer paying taxes on some of your income (the amount you put toward an RRSP) until you take it out. The money is invested -- you have to make some choices on where -- and as the investment grows, the growth is also tax sheltered. This means that if your investment grows, you're not paying tax on it along the way.
Later, when you withdraw it, you will pay tax on it, but the assumption is that your income in retirement will be less than when you're working, and if so your tax would be lower.
We've been working with RRSPs in Alberta for over 25 years. As independent financial services professionals, we have the ability to "shop the market" and put together custom-designed investment portfolios that fit your specific needs and goals.
Contact us today to set up your own RRSP and start planning your retirement dreams.
Mutual Funds are distributed through Desjardins Financial Security Investments Inc. (DFS Investments)
Tax Free Savings Account (TFSA)
Planning on saving some extra money for a purchase in the near future? Lean how a tax free savings account can help you grow your nest egg.
Registered Retirement Income Fund (RRIF)
When it comes time to draw an income out of your RRSP, how do you do it?