Stewart Financial Services

Registered Retirement Savings Plan

 

Starting and building an RRSP will likely be one of the most important steps you take in your financial life. There is no better way to reduce your taxable income and save for the future. Whatever your age or personal situation, it Is never too late to take advantage of the benefits an RRSP can offer. A Registered Retirement Savings Plan (RRSP) is a personal savings plan registered with the Canadian federal government allowing you to save for the future on a tax-sheltered basis.

 

Investments in an RRSP have 2 big advantages over investments held outside an RRSP:

• The contributions you make are tax-deferred. (Most people consider it “saving” tax, but the money is actually taxed when you eventually withdraw it.) If you contribute to an RRSP, you won't pay tax on that money. For instance, say you make $65,000 per year. If you contribute $5,000 to an RRSP, you can deduct $5,000 from your taxable income for the year. You save the tax you would normally have had to pay on that $5,000.
  
  
• The growth of your money is sheltered from tax while it grows. Investments inside an RRSP grow without being taxed. That is true, whether the growth is from:

1. Interest,                       2. Dividends, or                       3. Capital gains

RRSP More Information click here

 

Contact Stewart Financial Services for more information about RRSPs and other Registered Investment opportunities to meet your current and future needs and lifestyle.