Registered Retirement Savings Plan (RRSP)

Prepare for retirement with Registered Retirement Savings Plan managed by Walton Financial Group

Your Financial Advisor at Walton Financial Group in Barrie, Ontario can help you save for retirement with a Registered Retirement Savings Plan RRSP

Include a RRSP in your retirement planning.

Any Canadian who files their income tax return with the federal government is eligible to open a Registered Retirement Savings Plan (RRSP).1 For married couples or people in common-law relationships, if one partner earns more annual income, the couple can choose a spousal RRSP. This income-splitting strategy can help reduce a couple’s overall tax payment when they withdraw funds from their RRSP.

In addition, the Home Buyers’ Plan Opens a new website in a new window lets first-time home buyers withdraw up to $25,000 from their RRSP to buy or build a qualifying home. Also, under the Lifelong Learning Plan Opens a new website in a new window, you can withdraw up to $10,000 annually (maximum amount of $20,000) from your RRSPs to pay for education or training for you, your spouse or common-law partner.

Each year, Canadians can contribute whichever is less – 18% of their annual income or the maximum amount set Opens a new website in a new window by the Canada Revenue Agency – to their RRSP. When you contribute to an RRSP, your money grows tax-free inside the plan.

Since tax is deferred on RRSPs until funds are withdrawn, RRSPs may be particularly useful for wage earners whose income will be lower in retirement. For example, if you’re earning $80,000 per year and subject to 25% in tax, but expect to be have less annual income in retirement (e.g., $40,000 and subject to 15% in tax), it would make sense to put money into an RRSP while you’re working and then withdraw the money in retirement so that you would pay taxes at a lower rate.If you don’t make the maximum contribution to your RRSPs in a given year, you can carry forward the unused contribution balance. For example, if the maximum amount was $25,000 and you only contributed $5,000, you could carry forward $20,000 and make up the contribution later on. Your federal notice of assessment Opens a new website in a new window will show you the amount of your unused RRSP contributions.

RRSP INVESTMENT OPTIONS
A range of investment options – including mutual funds and segregated fund policies – can be a part of your RRSP.

Your financial Advisor at Walton Financial Group in Barrie, Ontario can assist you in making the right investment vehicle for your RRSP. Call to make an appointment today.