Are you maximizing your RRSP limit?

Are you maximizing your RRSP limit?

Is it worth it for you to invest in RRSP in your particular scenario?

Often clients ask me " should I invest in RRSP this year"?

Well there are two things you need to consider before answering that question for your self. 1. Do I need a deduction for this year? 2. Am I going to benefit in the long run fromt this investment?


Do I Need a Deduction This year?

One of the biggest advantage of RRSP investment is to reduce your tax bracket today and pay tax at a later day when your income levels are low due to retirement or other unforeseen circumstances.  Also, This is a question that is dependent on the level of income you earn and weather this income if coming from self employment source or T-4 Employee source.  If deduction is not bringing your current taxable income down, then investing in RRSP may not be the solution. 

Am I going to Benefit from this contribution in the long run?

Ultimately, you are investing into RRSP so that you can retire comfortably and if at the time of retirement this income is being taxed at the same or higher rate compare to your tax bracket today, it loses its impact.  I would recommend that you speak with your Financial Planner for a 20-30 minutes discussion if you have not done so already! 

After all we work hard today to secure our tomorrow and every investment should be made keeping your tomorrow in mind!





要查看或添加评论,请登录

Seema Sharma (MBA, CFP, CLU, CHS)的更多文章

社区洞察

其他会员也浏览了