 |
 |
|
|
|
||||
|
 |  The
Money Management Newsletter: RSP
Planning Halfway through the year and thinking about RRSPs? Perhaps the summer months are a good time to consider the RRSP contributions made earlier this year? Was it a rushed decision? Did you buy the first thing that came along or just parked the money to get the tax deduction? If so, this is perhaps the best time to review your RRSP plans.
Reedited to reflect only new age limit (now age 71, changed in 2007 from 69)) At Fiscal Agents, we believe saving and investing for a comfortable retirement is a year-round pursuit. Starting early in someone's lifetime can mean big rewards later on. Consider the case of the young newspaper carrier earning $40 a week - that's hardly enough to file a tax return, you might think. However, that $2080 of annual earnings, if reported yearly on a tax return, will create RRSP contribution room that will accumulate and be available for a much needed tax deduction when a full-time job comes along and tax savings become an issue. Another year-round activity should be about getting better rates on the GIC portion of your retirement portfolio than normally offered in your local bank branch. Actively pursuing the best rate available for your fixed term investments can add thousands of dollars to your nest egg over time. RRSP investment rates have been slowly increasing and may continue to do so if the Bank of Canada uses a higher interest rate policy to combat expected inflation. If your recent RRSP contribution is just sitting in a savings account, consider the opportunity cost of leaving it there vs. switching some of it to a longer term, fixed rate. Getting your RRSP started is one thing; getting your RRSP portfolio to work 24/7, harder, better, smarter, should be an ongoing goal…that's what we help you do. Investment funds, whether sheltered from taxation in an RRSP or not, are ideal for compound growth. Over the long term, well-chosen funds have proven indispensable to the wealth-accumulation process while providing diversification. By taking advantage of the equity markets' growth potential, you can structure a mixture of investments that are attuned to your personal risk-acceptance levels. Investment portfolios can be built to reflect your risk preferences, ranging from low risk up to aggressive. The summer months are not as hectic and may be an ideal time to sit down with an investment advisor and determine if your investment program is on track or if a more varied approach is required. We can help you understand different investment risks and how to apply them to your situation. As you move through your income-producing years, your priorities change. You may start out with a savings account; progress into growth-related investments, and then reach the point where your RRSP needs to be converted into income at your retirement. If you will be turning 71 in a few years, now may be a good time to start combining small RRSP balances into larger deposits as they mature so that they are easier to deal with when it comes time to RRIF. Also review the named beneficiaries on each of your plans and update them if your circumstances have changed. Types of RRSP savings and investment services available from our financial institution partners include:
Getting the most out of Fiscal Agents and your Retirement Income options Careful consideration of your personal circumstances is critical to understanding how to arrange your retirement-planning objectives. As the summer months arrive, consider calling one of our advisors who can explain the RRSP savings options that are best suited to you. We help individuals on a one-to-one basis, design and set up RRSPs, transfer and re-assign assets on an ongoing basis - we are here to help. Call for a free no-obligation consultation 905-844-7700 Fiscal Agents - the Money Management Made Easy people Fiscal Agents, a No-Fee Deposit Broker, has been monitoring the banking and trust industries' products and services since 1977. Our interest-rate surveys are published in both national and regional media outlets. Thus we are Uniquely Qualified® to help guide you through Canada's financial supermarket, choosing from its thousands of products and services.
Click here
to view some of the more than 40 financial institutions we consult with
each day while reviewing savings and investment products. With files from NC * * *
Have a question regarding
this article? Use our feedback form
to send us a note. ©
, Fiscal Agents Money Management Newsletter
|
|
