South Coast Financial Services
We care about your financial self defence ... shouldn't you?
Seven tips to make the most of your RRSP
Saving for retirement doesn’t have to be challenging!
An RRSP is a type of investment account that allows you to reduce your taxable income each year, while building up savings for future retirement income.
The money you invest in your RRSP is tax deductible, reducing your current taxable income.
Remember that RRSPs aren’t tax-free, they are tax-differed - you defer tax on your investment income until it’s withdrawn, presumably in retirement when you’re in a lower income bracket.
1) Plan your retirement goals.
What kind of lifestyle do you want to live in retirement? Start by booking
your complimentary Financial Goals Analysis now to ensure your goals are
set so you can enjoy a long and fulfilling retirement.
2) Invest early for compound growth.
Investing in your RRSP well in advance of retirement means that your
money has more time to benefit from tax-sheltered growth. The best time
to start is now with a PAC of $50.00 a month.
3) Leverage your tax refund.
As tempting as it might be to spend your tax refund, reinvesting it will work
to your long-term advantage to reach your retirement goals.
4) Contribute now, deduct later.
You don’t have to claim deductions on your RRSP contributions in the same
year that you make them. If you are expecting a future increase in taxable
income that will push you into a higher tax bracket, you can defer claiming
deductions until a later year to benefit from a higher tax refund.
5) More room to invest in your future.
Unused contribution room can be carried forward indefinitely to use in
6) Develop RRSP withdrawal strategies.
Reaching age 71 triggers the maturity of your RRSP. You must convert your
RRSP into a Registered Retirement Income Fund (RRIF), or annuity, or lump
sum payout by the end of the calendar year in which you turn age 71. RRIF
minimum withdrawals start the year after the RRIF is established.
7) Book your Financial Goals Analysis.
Start building for your future by booking your Financial Goals Analysis with
me and starting a monthly RRSP PAC towards you future retirement!
You may find this information useful and know of someone it could help so forward it to them and help them grow towards their retirement.
Investing for the Future
Should you desire more information in any of these areas contact us, our contact information is below and we would be glad to setup a time where we can sit down and discuss things with you.
Also make sure you book your appointment for your complimentary, comprehensive and confidential Financial Goals Analysis. The analysis can lead you and your family to your financial goals and dreams!