It’s that time of year again. RRSP contributions! You have until March 3, 2014 to make an RRSP contribution for the 2013 tax year. An RRSP contribution is an effective income tax management tool, which allows you to invest for your future while getting a refund on your taxes now. Win-Win. Check out 4 reasons why you should consider investing today.
1. We Will Help You Understand Your Investment style
Different people are at different stages of life. Some people are nearing retirement and want to have more conservative investments. Others are younger and want more aggressive targets. Do you know what style fits you? Do you want to be invested in higher risk vehicles where the reward may be great but is less guaranteed or do you want more conservative investment vehicles where the return is lower and safer. An investment expert can guide you through all your options and help you determine what your risk threshold is. From investing in the markets and labour sponsored funds to Guaranteed Investment Certificates (GIC) and daily savings accounts there is an option for all kinds of investors.
2. RRSP Loan
Have you found yourself wanting to make an RRSP contribution, but don’t have ready available cash? Consider applying for an RRSP loan. There are many options to choose from and they all have competitive rates. How does the loan work? If you wanted to make an rrsp contribution, you take out the loan to invest in an RRSP then any refund you get on your tax return can be used to pay back the loan. Or you can pay the loan back within a set timeframe, for example over the course of one year.
Related read: Should You Invest in one lump sum or on a monthly basis
3. Get Your Retirement Plans in Order
An RRSP is just one part of a healthy financial plan. There is more to retirement planning than just choosing your investments. There are a whole range of products designed to help you deal with many of life’s situations. From life and disability insurance to estate planning and health benefits you need to be aware of what options are available to you and your family. Why not take some time and have someone review your financial map (link to Jim Kibble) so you can see where there might be gaps in your plan.
Related read: 6 Reasons Why Life Insurance is Better Than Mortgage Insurance
4. Have you already maximized your RRSP?
Any investment you can make as an RRSP can be made as an unregistered investment. Perhaps you’re interested in a Tax Free Savings Account (TFSA) and want to invest through that channel. A TFSA is another great way to invest and the best part is, if you withdraw your funds from a TFSA the growth on the money is not taxable! As with any investment product there are rules. Call Erb and Erb Insurance Brokers Ltd. and one of our investment experts can advise you about all the details.
Would you like a review of your retirement plan? Here’s more information about our retirement planning review services.
Would you like to have more options to invest? Check out how we can help you develop your investment strategy.
Have a comment or question? Please let us know in the comments below.
Thanks for reading.