Retirement Planning

One of the very effective ways to build a retirement savings plan is to contribute towards your Registered Retirement Savings Plan (RRSP)

The registered retirement savings plan (RRSP) is specially designed to provide you with retirement income. It is advantageous because your contributions entitle you to a tax deduction and generate investment income that is sheltered from income tax.When you withdraw your funds at retirement, they become taxable. However, the taxation rate applicable is generally lower because your retirement income is usually lower, too.

The amount you may invest in your RRSP this year is determined on the basis of the income you earned last year. You may contribute up to 18% of that income, less the pension adjustment, up to a maximum of $22,000.

You may contribute to your RRSP up to the end of the year in which you turn 71. You may then convert your RRSP into a registered retirement income fund (RRIF) or other retirement income.

Please feel free to contact Aman Kapur at www.youinsuranceguy.ca or by phone 1-416-509-2540 to assist with the plan of your choice. Or simply click here to request a quote.