RRSP

Great benefits of opening an RRSP

A Registered Retirement Savings Plan (abbreviated to an RRSP) is a savings account which offers you a simple way to put money away for your retirement. A key feature of an RRSP is the fact that it is registered with the federal government. Here, we will explore five notable reasons to save for your retirement in this way.

  • Your investment is tax free
    This is a great feature of an RRSP. Providing that you keep your investment earnings in the plan, you won’t pay any tax on them. This, of course, means that your savings have the potential to grow at a faster rate.
  • Your contributions are tax deductible
    You are able to show the contribution that you make towards your RRSP as a deduction on your annual tax return, which can add up to considerable savings for those in the top tax bracket. What’s more, you can carry forward this allowance to future years, if your income in one year is lower than usual.
  • You can save even more tax by taking out a spousal RRSP
    Another great tax benefit of these plans is the fact that you can combine your tax-free savings within a spousal RRSP and then more equally split your retirement income between you, again leading to potential further tax savings.
  • You can transfer your RRSP when you retire
    This means that you can easily move the funds invested in your RRSP to an annuity or a RRIF at the time of your retirement to receive regular, staggered payments – though you should note that you will have to pay tax on these payments on a yearly basis.
  • You can withdraw from your RRSP under certain conditions
    You won’t pay tax on withdrawals from your RRSP in particular circumstances. For instance, you are permitted to withdraw up to $25,000 for a down payment on your first home, or up to $20,000 to pay for education costs (funding rules apply).

Latest News

2022 Year End Tax Tips and Strategies for Business Owners

The end of 2022 is quickly approaching – which means for business owners, it's time to review tax tips and strategies to maximize your benefits.

2022 Personal Year-End Tax Tips

The end of 2022 is quickly approaching – which means it’s time to get everything in order, so you’re ready when it comes time to file your taxes. We’ve broken this article into the following sections to make it easy to find the tax tips you’re looking for: • Investment considerations, including how to best contribute to TFSAs, RRSPs, and RDSPs. • Families, including how to claim childcare expenses and make the most of RESPs. • Retirees, including essential details about applying for CPP and OAS.

Estate Planning for Blended Families

Blended families – where two people get married but have children from previous relationships – are becoming more common. On top of the day-to-day challenges of blending a family, new spouses also have to figure out how to plan their estates, so everyone is properly taken care of. We cover all of the following a blended family must consider while estate planning: • Sharing the Family Home • Make the Most of a Registered Retirement Savings Plan • How to Share Non-Registered Investments and Other Assets • Why It's Important to Select a Good Trustee • The Advantages of Life Insurance for Blended Family Planning

Why Insurance Is So Important If You’re A Single Parent

Being a single parent is a lot of responsibility. Learn how the right types of insurance can provide you and your family with the financial protection they need.

Essential tips and tricks for paying less tax and keeping more of your retirement income

It’s important to make the most of your retirement income. To do so, you need to be aware of what income is and isn’t taxable, and also how to make the most of the tax breaks you’re entitled to. This article outlines the four main steps you need to take to ensure you keep as much of your retirement income as possible: 1. Make a financial plan. 2. Split your pension income. 3. Buy an annuity. 4. Be aware of retirement-related tax breaks.

Don’t lose all your hard-earned money to taxes

It’s essential to manage your tax planning properly – both while you are living and for after your death. You want as much of your money as possible to go to your beneficiaries, not the government. Our article contains three tips to help you do that: 1. Learn how to make the most of the lifetime capital gains exemption. 2. Figure out ways to decrease your end-of-life tax bill. 3. Look into Immediate Financing Arrangements.

Financial Planning For Self-Employed Contractors

Being a self-employed contractor can bring you a large cash flow and the satisfaction of being your own boss – but it can also make financial planning more complicated than being an employee. When creating a financial plan, Self-employed contractors need to keep a number of items in mind. Read to find out!

July/August COMMENT Newsletter

COMMENT is an informative newsletter targeted to the unique niche that CLU advisors occupy in the financial services industry, with a focus on risk management, wealth creation and preservation, estate planning, and wealth transfer.

Five Ways To Withdraw Money From Your Business In A Tax-Efficient Manner

You have worked long and hard to build up your business, and now you are ready to withdraw money from your business' bank account. But you don't want to get hit with a huge tax bill. So here are 5 ways to withdraw money from your business in a tax-efficient manner.