With the cost of living what it is now and all the recent market uncertainty, if you’re like most Canadians, chances are you could use some help when it comes to saving for your retirement. If you’re looking to lower your income tax bill, build your retirement nest egg, or even save to buy your first home, a Registered Retirement Savings Plan (RRSP) can help you get there faster.
An RRSP not only keeps more money in your pocket today by lowering your current income tax bill, but your RRSP savings grow faster because you only pay tax when you take money out. Some programs, such as the Home Buyers’ Plan, even allow tax-free withdrawals, provided you repay the money within a certain timeframe.
As a reminder, you can contribute to your RRSP at any time, but to lower your income tax for the 2022 tax year, the deadline to make your contributions is March 1st, 2023.
As difficult as 2022 was with rate increases, high inflation and market swings, the worst is now probably behind us and the conditions created for a much more compelling investing environment going forward. Regardless of where we are in the market cycle, it’s important to take a disciplined approach to investing and stay focused on your retirement goals.
If you have any questions or would like to make a contribution to your RRSP, please let me know how I can help.
Thanks,