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. This 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 theory and not a fact. The way things are going with our country’s deficient, do you think taxes will decrease or increase over time? If you think like me, you probably feel taxes will increase. With this said, I can show you other ways to decrease your income tax and investment tax for today and tomorrow – reach out and I will be happy to help (HINT: Line 135 on your income tax return can be a huge tax deduction).
FACT #2: Your Biggest Asset in Life is……. YOU!
It’s not your home, it’s not your RRSP, it’s you! You and your ability to provide income is what will make you wealthy. RRSPs, TFSAs, Stocks, Mutual Funds, ETFs, Insurance, Real Estate are all tools to help you to build wealth – that’s what they are: tools. It’s how YOU use them that counts. RRSPs are my 3rd favorite wealth building tool that should be a part of everyone’s diverse wealth portfolio (unless if you are INC).


The Real Question is:

What do you invest in your RRSP and how much?

The Financial Engineer’s Answer:
Taxes are you biggest expense. You are your biggest asset. I can only tell you the answer to the "how much" question after meeting you and running some numbers.
I can easily answer the “what do you invest in your RRSP” question ("easily" happens after 5 years of studying, researching, and applying several investment products and strategies).
As mentioned, the biggest wealth killer is taxes. Another enemy is fees. For most, the fees associated with Mutual funds are not worth it! A MER (management expense ratio) of 2% or more can put a huge dent in your investments and the majority of funds underperform the market. This is why, for long term and for those that have less than $250,000 to invest, I recommend a professionally managed portfolio of index funds and ETFs.
You are your biggest asset. You are also your biggest liability. Money is very emotional and we do not make wise decisions when we are emotional. Emotion is another enemy of wealth creation.
That’s why I also recommend professional advice and guidance when it comes to the investments for your retirement. Someone that wants you to succeed, can help you make better, educated decisions, and will reduce the emotions involved so you can focus on what’s truly important: your career, your health and your family.
That someone is me. I can help you start your RRSP portfolio today – it’s as easy as clicking here to start the portfolio of index funds and ETFs that I use and recommend at WealthSimple with an MER of only 1.0%.
: https://wsim.co/0xec8wm
Remember, RRSPs are just one tool to help reduce tax and create wealth. To learn more about what a truly diverse and holistic financial plan that includes 5 steps to retire on your own terms is, download a free copy of the case study I worked on, called "The Road Map for Financially Successful Professionals" by clicking here.
Knowledge is only potential power. It's what you do with your knowledge that counts. I love helping professionals put their knowledge into action.
Reach out today to see if I can help you retire on your own terms. Start your professionally managed RRSP today by clicking here.

Steve MacLellan, P.Eng
Cell: 902-240-6508
Email: steve@thefinancialengineer.cahefinancialengineer.ca
Web : www.thefinancialengineer.ca
Connect with me on LinkedIn: www.linkedin.com/in/stevemaclellanpeng
Book a 15 min conversation here:  Your future self will thank you for it!


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