Chris Worby is a Trusted Regina financial advisor and Wealth Management services provider. With over 20 years of experience, Worby Wealth Management has been committed to providing a high standard of ,financial and wealth management services to individuals, families and business owners in Regina and area. Worby Wealth Management listens and provides a personalized financial plan. In our latest ,Worby Wealth Blog Post we share details about Registered Retirement Saving Plans (RRSPs).
RRSP season is upon us
A Registered Retirement Savings Plan (RRSP) is an investment that is registered with the Canada Revenue Agency (CRA) which allows for deferring of taxes owed on the money contributed and any investment income earned, until future years when the funds are withdrawn.
The money you contribute to an RRSP now allows you to reduce the income you pay tax on for the previous taxation year. 2 months into the next calendar year is the usual deadline to invest into RRSPs for the previous taxation year. That means January and February are the perfect time to invest in an RRSP for the previous tax year.n n“Wait, did you mean now as in now now, or as in now… eh I’ll get to it soon now?” nnThe old adage is never more relevant – that being: the best time to invest was 50 years ago… the second best time to invest is right now! nnThe 2022 limit is $29,210 or 18% of your earned income reported on your 2021 tax return (whichever is less), minus any employer-sponsored pension plan contribution, plus any unused contribution room from previous years. Check your most recent Notice of Assessment (NOA) from CRA to find out your limit.
There is no minimum contribution age, but you must have earned income reported to CRA. At Worby Wealth Management we’ll never promote child labour, regardless my children seem to think spending time on Roblox counts as performing a household chore. n nThe sooner you start contributing to your RRSP, the better, in order to take advantage of the power of compounding. Contributions can be made up until the year you turn 71 upon which time they must be converted to a RRIF or you must purchase an Annuity.
A variety of investments can be held in an RRSP, including cash, GICs, bonds, mutual funds, ETFs and individual stocks. However, before choosing your investment approach it’s always best to consider Retirement, Tax, and possibly even Estate issues.
Questions regarding RRSPs?
If you have questions about account or investment options, then contact Worby Wealth Management to get your questions answered and start investing in an RRSP or other investment accounts today. Some of the services that ,Worby Wealth Management can help you with:
- Insurance Advice
- Regina Wealth Management Services
- Pay Less Tax With Tax Planning
- Become Mortgage-Free Faster With Financial Education
- Estate Planning
- Retirement Planning
The comments contained herein are a general discussion of specific issues intended as general information only and should not be relied upon as tax or legal advice. Please obtain independent professional advice in the context of your particular circumstances. This Blog was written, designed and produced by Chris Worby for the benefit of Chris Worby, a Financial Advisor at Worby Wealth Management, a registered trade name with Investia Financial Services Inc., and does not necessarily reflect the opinion of Investia Financial Services Inc. The information contained in this article comes from sources we believe are reliable, but we cannot guarantee its accuracy or reliability. The opinions expressed are based on an analysis and interpretation dating from the publication date and are subject to change without notice. Furthermore, they do not constitute an offer or solicitation to buy or sell any securities. Mutual Funds, approved exempt market products and/or exchange-traded funds are offered through Investia Financial Services Inc.