An RRSP is a personal savings plan that lets you save for your retirement on a tax-sheltered basis, so your money grows faster! Start your RRSP as young as you can preferably during this tax season. Small contributions when you are young will compound beyond your expectation! Talk to our advisors to know more - No fees, no obligation!

1. RRSP
Everything you need to know

2. What is a RRSP?
RRSP is an acronym for “Registered Retirement Savings Plan.”
An RRSP is a personal savings plan that lets you save for your retirement
on a tax-sheltered basis, so your money grows faster!

3. You can almost think about the RRSP as the CRA saying, you know what,
don't pay us the tax this year. Pay it over the next 40 years when you'll
probably be paying less tax. We don't get many schemes like this, so we
should take full advantage of them!

4. RRSP Benefits

5. 1. Pay Less Income Tax Now
Your annual contribution can be deducted from your gross income,
reducing the amount of income tax you pay that year.

6. 2. Defer Tax on Investment
Income
The income you earn is sheltered from tax, allowing it to grow faster. By
the time you retire and withdraw funds, you will likely be in a lower tax
bracket.

7. 3. Borrow from Your Self
Withdraw money to buy your first home1 or pay for your or your
spouse’s education2, without penalty—providing it’s repaid within the
specified time.

8. Example

9. Here’s how a tax-deferred account like an RRSP works. Let’s say you
make $70,000 a year and you decide to put the maximum allowable into
your RRSP — $27,830. When tax day comes around, the CRA will treat
you as though you earned just $42,170.

10. Note:
Tax-deferred doesn’t mean tax-free, and you will eventually have to pay
taxes when you withdraw your money years down the line, but by the
time you do so, you’ll be retired, your income will almost certainly be
smaller and, thus, your tax rate be lower than it is now.

11. Talk to our experienced financial advisors to know more about how to start a
RRSP. No fees, no obligation!
Start your RRSP as young as you can preferably during this tax season. Small
contributions when you are young will compound beyond your expectation!

12. Created By:
www.trustlife.ca