Understanding the Basics

What is an RRSP?

A registered retirement savings plan (RRSP) is a government approved plan through which you save money for your retirement years.  You can contribute to an RRSP up to the end of the year in which the plan holder reaches age 71.

What does an RRSP do for you?

You are investing money when you can most afford it during your peak earning years - to build up a comfortable retirement fund and to defer or reduce income taxes payable.  Not only do you invest some money that would otherwise be paid in taxes, but the earnings of your plan are not taxed until you withdraw them.  Since 100% of these earnings can be reinvested and compounded, the growth of your RRSP increases rapidly over the years.

An RRSP is an investment in your future, with benefits you can enjoy today. By contributing to an RRSP, you can take advantage of substantial tax savings now, and enjoy peace of mind in knowing you’ll have a financially secure retirement. Plus, your RRSP dollars are completely tax sheltered as long as they remain in the fund.

Whether you’re starting your first job, just starting a family, or finally hitting your peak earning years, RRSPs will likely play an important role in your long term financial plan. No matter what stage of life you’re in, we can help you make the most of your allowable RRSP contributions.

Making Your Money Count

We’ll help you find a way to fit RRSP contributions into your current financial plan, so you can fully enjoy the tax benefits. We’ll also show you how RRSPs can give you control over your financial future, so you can enjoy the retirement of your dreams.

When Should I Start Saving for Retirement?

Now. The sooner you start to save, the longer your money has to compound and grow (you earn interest on the amount you contribute, plus interest on the interest).

Pay Down Your Mortgage, or Contribute to an RRSP?

You can do both. Time is on your side, so the sooner you start saving, the more your investment will grow. Try to maximize your RRSP contribution, then use any tax refund you get to pay down your mortgage.

Who Can Contribute to an RRSP?

Anyone 18 to 71 years old who earns an employment or self-employed income, or who has unused contribution room.

How Much Can I Contribute?

Look at the Notice of Assessment you received with last year’s income tax statement. The amount you can contribute this year includes any unused contribution room.

When Can I Contribute?

You can make an RRSP contribution at any time during the year. The contribution deadline for any taxation year is 60 days into the next calendar year.  Most Canadians still make their contribution in the two weeks before the deadline. You can avoid the stress of trying to find money for your RRSP by starting early and making regular monthly payments.

The Convenience of Monthly Deposits

Maximize your money by depositing your RRSP contribution monthly. The interest earned is compounded, which means you’ll be earning interest on the interest! In the long run, this can have a dramatic effect on your investment. We can help you benefit from the monthly deposit advantage, by automatically transferring funds from your chequing account to an RRSP. It’s convenient. It’s painless. And it’s as easy as signing an authorization form at your branch.

Consider the Advantages of an RRSP Loan

You know it’s important to invest in RRSPs, but sometimes it’s tough to come up with the cash before the deadline for contributions. We can help with an RRSP loan. We’ll show you how the cost of borrowing can actually be offset by your tax savings at year end.