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A Simple Guide to RRSPs

Financial Advice

What Are the Benefits of Having an RRSP?

Saving for your future doesn’t have to be as tedious as one might think. While it may feel like retirement is ages away and you have plenty of time, if you begin preparing now, you will be more comfortable in the long run. Let us help you take care of your future cost of living and all those big travel plans! Osoyoos Credit Union has proudly been serving our community and helping our members invest since 1946. Our expert financial advisory team can help you assess your finances and get started with the RRSP plan that’s right for you.

RRSP’s: Significant Tax Saving Opportunities

A Registered Retirement Savings Plan is one of the smartest ways you can invest for your future and save on your taxes. RRSP contributions come off your taxable income; therefore, they have the capacity to drastically reduce your tax bill. Any Canadian under 69 years old can contribute up to 18% of their income to a maximum of $26,010. If you have not maximized your contributions in the past years, you even have the opportunity to contribute more. Unused contributions have the capacity to be carried forward. Note that any deposits higher than your yearly contribution limits will not provide you further tax breaks for the current 2017 year. If you are in the highest tax bracket for example, a $1000 contribution equates to a $400 tax break!

How Do You Envision Your Retirement?

Many people assume they will finally be mortgage free and only having to budget for property taxes and their bills during retirement. Perhaps, there will be unexpected medical costs or new prescriptions. Maybe gasoline vehicles will be outlawed and a greener transportation approach will be implemented. Certain aspects of the future can be tricky to predict. However, future cost of living analysis along with the rising costs of food and electricity show us that being prepared for everything takes careful planning and consideration. If you have to spend the majority of your retirement savings on day-to-day items, your vision of retiring elsewhere or travelling to sunny locales may be compromised. Thankfully, our dedicated and experience financial advisors can help you achieve the retirement you have always dreamed about.

Osoyoos Credit Union | RRSP | Camera and passport for travel

Monthly RRSP Contribution Deductions

If you have been meaning to make a lump sum RRSP investment for years and never seem to have enough money left over by the deadline…fear not! You are definitely not alone. Many of our members prefer discreetly saving throughout the year instead. We can help you set up monthly RRSP deductions similar to an automated bill payment. Isn’t it time you started paying yourself first? You make sure that the cable company and the electric company always get their share…now it is time to include your retirement on your list!

RRSP’s Compound and Grow (Tax Free!)

Capitalize on your retirement nest egg with the tax-sheltering growth acceleration your RRSP achieves. All withdrawals are taxable and the goal is to leave these funds intact until retirement. Clients are often in a much lower tax bracket once they retire, enabling them to access more of their money upon withdrawal. We can look at timing your contributions to ensure you are investing at the most advantageous time. Individuals expecting promotions and salary increases will want to compare their tax brackets to ensure they are claiming their deductions wisely.

Education and Homebuyer’s Plan

Did you know that your RRSP can be used for education with the Life Long Education Plan or put towards your first home down payment with the Homebuyer’s Plan? Of course, we want you to leave your funds intact until retirement; however, there are certain instances when these savings may help you invest in your future in other ways. Our professional team can help you determine if this is your best bet.

Together We’re Better!

Everyone is unique and has a different financial strategy. Even if you have never considered an RRSP contribution, you still have time! Osoyoos Credit Union is committed to community. We understand that not everyone loves finance and investing the way we do and we are committed to efficiently explaining your financial options. Our team is happy to make some calculations and projections to show you how much your savings now can positively influence your retirement. We believe in getting to know each member in order to understand which products and services will help deliver their sought after goals.  Even if you are fortunate enough to have a pension, an RRSP can help you fill in potential holes and enjoy more financial security. Would you like a monthly pay cheque when you retire? Your RRSP can be transferred into a RRIF or annuity upon retirement to help you enjoy more of your cash while reducing your taxes.

Start Investing Today With Osoyoos Credit Union

We would love to review your current retirement ideals and help you achieve those goals! Starting now is better than not investing at all. Call us today to book an appointment and let us help you think positively about your financial future. We look forward to helping you enjoy your hard-earned money smartly and securely. See you soon!

Make an appointment to Find the Cash you need for retirement today!

Osoyoos Credit Union | Find the Cash for retirement with RRSPs