Discover your RRSP options with Walton Financial Group in Barrie, Ontario. Our experienced advisors can help you make informed decisions for a secure financial future. Consult us today!
Walton Financial Group in Barrie, Ontario has advice for investors about RRSP options
One of the first things you should do is consult with your financial advisor, and Walton Financial Group has a team of experienced and knowledgeable professionals ready to assist you.
Your advisor will look at this question in the light of your age and family situation. Here is some information to consider.
MAKING RRSP CONTRIBUTIONS:
As a general rule, it makes sense to maximize contributions to both your RRSP and a tax-free savings account. But you may not have the dollars for both. In some cases, it may make sense to contribute to your TFSA first, notably where your marginal tax rate is expected to be higher in retirement. This can be the case where, for example, you’re a younger person and expect to be in a higher tax bracket in the future, or you’re on parental leave or a sabbatical and your income is lower today.
Perhaps you’re a senior and can’t contribute to an RRSP any longer since you were age 71 or older last year – but TFSAs are still an option for you. Or you’re expecting above-normal rates of return (a TFSA will then allow you to realize those capital gains and withdraw them – all tax-free). Maybe you’ll never need the assets (withdrawals from an RRSP or registered retirement income fund are mandatory and are taxable to boot, but withdrawals from a TFSA are not mandatory). Finally, maybe you’re saving for short-term consumption, or you want collateral for a loan (TFSA assets can be pledged as collateral but RRSP assets cannot).
MAKING RESP CONTRIBUTIONS:
It might also make sense to contribute to a registered education savings plan rather than an RRSP. The reason? The Canada Education Savings Grant. CESGs are grants from the government generally equal to 20 percent of RESP contributions, to a maximum of $7,200 in the lifetime of a beneficiary (your child).
IF YOU HAVE DECIDED THAT AN RRSP IS YOUR BEST CHOICE THIS YEAR:
This is where the support of the Walton Financial Group can also offer investment advice.
Never forget that your RRSP is really a pension plan. Manage it accordingly. That means maintaining an appropriate asset allocation, diversifying geographically, avoiding undue speculation, and monitoring the portfolio on a regular basis (at least quarterly). If you do, you’ll end up with a very healthy pension fund, which will provide a steady income for the rest of your life.
Call Walton Financial Group in Barrie, Ontario, to arrange an appointment with a financial advisor to discuss your RRSP options.
