Save for Your Retirement for Tomorrow and Lessen Your Taxes for Today!!!
Whether you’re employed or self-employed, an RRSP is an investment vehicle to save money for your exciting retirement. The account can hold a variety of investments such as stocks, mutual funds, GICs, etc. and has significant tax advantages. These tax advantages and other advantages include:
- Tax Deductibility – Investors may deduct contributions agains their income. For example, if a contributor’s tax rate is 40%, every $100 they invest in an RRSP will save that person $40 in taxes, up to their contribution limit
- Tax Sheltered – The growth of your RRSP Investments are tax-sheltered. Unlike Non-RRSP investments, your returns are exempt from any capital gains tax, dividend tax, or income tax. This means that your investments under an RRSP compound at a pre-tax rate
- Tax Deferral – At the time of your retirement, you are able to withdraw from your account which will typically be taxed at a lower rate than your working years
- A Spousal RRSP also allows for income splitting at Retirement. A high-earner (spousal contributor) may contribute to a Spousal RRSP in their spouse’s name (the account holder). Since retirement income is divided evenly, each spouse can benefit from a lower marginal tax rate
- Once you retire, the RRSP provides you with payments making up your retirement income.
- You can borrow from your RRSP to buy your first home or pay for your education
Call 604-260-7150 or complete the form on the right to speak with an Advisor.
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