Too RRSP or to not RRSP – is this even a question?
Too RRSP or to not RRSP – is this even a question? March 2nd is the cut off date!!!! It’s RRSP season: bank and investment ads are running wild. Consumers are often faced with a confusing jumble of misguided notions about this retirement savings vehicle. Myths about RRSPs run rampant, confusing consumers about whether there is any point in contributing. Is there any point? Unless you are incorporated, there are several benefits to investing your RRSP. If you are incorporated – you do have better options. Let’s focus on the facts for employees or sole proprietorship business owners, and professionals that pay personal tax. Here are some facts. FACT #1: Your Biggest Expense in Life is…… TAXES! Your RRSP contribution will reduce your income taxes and the growth is not taxed. T his is always a good thing. You will be taxed when you take your RRSPs out, just like a paycheck. This is not a good thing. The theory is your income tax will be lower when you retire – this is a theo