An RRSP is a great idea to save for your future, it allows you to be able to take care of yourself throughout retirement. A Registered Retirement Savings Plan or better known as RRSP is an investing tool that allows you not only to deduct taxes as you work but to make sure that even when you are retired you are provided for.
As you contribute into the plan the money grows tax-free and your contributions are seen as deductibles which means they can be used to reduce your annual taxes. However, when the money is drawn tax is applied to it at a marginal rate.
A great advantage of this plan is that the money can be withdrawn at any point, no matter age or whether you are working or not; although the sum is taxable. If you keep your RRSP till you reach the age of retirement it can be transferred into a RRIF (Registered Retirement Income Fund). Which provides you with a steady amount of cash flow that could potentially support you for the rest of your life.
An RRSP loan is a great option if you don’t have the funds to invest into your RRSP. RRSP loans will help you increase your RRSP savings plan and get tax savings. The more money you invest into the RRSP, the more money can be deducted from your annual income taxes. Your contribution limit can be found on your notice of assessment.
You can find more information about RRSP on the following website:
Contact Insurance by Mira Glinauer for more information about the recommended RRSP account and to choose the most recommended loan for your RRSP.