Navigating the RRSP Season: Your Essential Resources
As the RRSP (Registered Retirement Savings Plan) season approaches, it's important to be well-informed so you can make the best choices for your financial future.
1. Optimizing Your RRSP
Every dollar is important when you're managing financial responsibilities and saving for retirement. Increasing your anticipated tax refund could enhance your RRSP contributions, significantly boosting your short-term and long-term savings. You have the option to temporarily fund this additional contribution either out-of-pocket or with a conservative short-term RRSP loan until you receive your refund. Be sure to consult an advisor to determine what savings strategies would be best for you.
2. RRSP vs TFSA
Putting some money away for the future is always a sound idea. However, with so many investment opportunities, some of which may require you to pay tax on the investment income earned, which one is the right fit for you and your savings goals today?
Tax Free Savings Accounts (TFSAs) and Registered Retirement Savings Plans (RRSPs) are both available savings tools and can house many of your investments while helping to defer or reduce your tax obligations. But there are a few things to consider…
Watch this video to learn more about both of these savings vehicles, including eligibility, contribution limits, tax considerations and more!
If you have any questions, please do not hesitate to contact our financial planning team at financial.planning@networkwealth.com.