Contributing to your Registered Retirement Savings
Account (RRSP) means tax-deferred savings today for money needed
tomorrow. Even in tough economic times, you can maximize your
savings with these dos and don’ts from TD Waterhouse: - Don’t delay in starting to
contribute to your RRSP. Start contributing as much as you can
afford, as soon as you can. Even modest, regular contributions to
your RRSP can build over the years into a significant retirement
nest egg.
- Do maximize your contribution. Your annual
RRSP contribution can greatly reduce the amount of income tax you
pay in that year and the money you put away can have years of
tax-deferred growth potential. If you are worried that you do not
have enough money to make your maximum contribution this year,
consider borrowing money to contribute to your RRSP and then paying
back your loan with your tax-refund.
- Do speak with an expert to get retirement
advice for your unique situation. Consider an investment product
such as TD Comfort Portfolios, a simple solution for novice
investors. For a modest amount, investors have access to
TD’s top five funds and top fund managers. The funds are
tailored to your risk tolerance in an easy to understand all-in-one
portfolio.
- Do contribute to a spousal RRSP. Spousal plans
can be set up to split income for the purpose of saving on taxes in
the retirement years. The purpose of a spousal RRSP is to shift
RRSP assets to the lower income earner, so that at retirement the
income from the plan is taxed at a lower marginal rate, resulting
in tax savings.
Visit www.tdretirement.com for retirement planning tools
and further information. |
