REGISTERED RETIREMENT SAVINGS PLAN
Canadians' Primary Method of Retirement Saving
RRSP - Registered Retirement Savings Plans is the most popular retirement savings tool often used as a main saving method. It allows you to invest money today and have the earnings accumulate tax-free for years until you decide to withdraw the funds throughout your retirement years.
• Lowers the amount of income tax paid by contributing toward RRSP.
• Carries forward of unused contribution room to future higher income earning years.
• Allows contributions up to age 71.
• Grants spousal RRSP options for income sharing efficiency in the future.
• Permits withdrawals, however, the amount taken out is taxable income.
• Allows individuals to self-manage their RRSP investments.
Several facts about RRSP:
• RRSP is the primary method of retirement savings in Canada.
• You can enjoy tax deferred growth in your RRSP until conversion to retirement income.
• RRSP contributions are based on your annual earned income. This could be your salary, self-employment income, or net rental income.
• Contribution limits are derived from your accumulated contribution room, as reported on your “Notice of Assessment” annually from CRA.
• Your RRSP must be converted to a form of retirement income by Dec 31st of the year in which you turn age 71. Later on these funds can be moved to RRIF.
• In the event of death, tax deferred spousal rollover of your RRSP balance may apply.
• RRSP offers flexible contribution frequencies and amounts as well as loan opportunities with competitive interest rates.
• You can`t deduct the interest on loans for your RRSP contributions.
When it comes to planning for retirement, we understand that everyone has unique retirement needs.
Maybe you would like to know more about flexible contribution frequencies; loan opportunities that offer competitive interest rates and a variety of investment options to choose from. Or you would like to broaden your options and feel more comfortable with your investments.
At Calla Financial Services Ltd. we can help you to maximize the most from your RRSP. If you are looking for a variety of investment options in order to maximize your returns and minimize the risk of your portfolio we can help you to explore your options including Guaranteed Investment Certificates (GIC) equivalents and Guaranteed Investment Funds (GIF) such as segregated funds.
You can call or email one of our financial consultants to determine what the right level of risk is for your RRSP portfolio so that you can have peace of mind with your investments being allocated according to your level of comfort.