With the growing popularity of your TFSA , and it’s ever-increasing lifetime deposit limits, there is no wonder that the RRSP is becoming the Rodney Dangerfield of Canadian Investment Landscape. It just doesn’t get any respect anymore.
I disagree. An RRSP is an integral part of any Canadian’s financial plan, and this is the best time of year to review your strategy.
Aside from the tax deferred growth your RRSP will grant you, there is also the incredible tax deduction that never quite makes it into the discussion lately. It should.
But that is not all your RRSP can do for you. Here is a list of 6 less popular benefits of your RRSP that you may have forgotten about.
- You can buy your first home with the RRSP home buyers plan.
- You can go back to school with the help of the RRSP lifelong learning plan.
- You can split income with your spouse to save precious tax dollars.
- You can reduce your tax deductions at source so your RRSP contributions are before tax.
- You can make RRSP contributions “in-kind” of your stocks, mutual funds or bonds.
- You can use the one time over-contribution limit of $2,000 to take advantage of tax-free growth.
You see? Your RRSP does deserve a little more respect. Whether you take advantage of any of these options, enjoy the huge tax benefit, or simply use your RRSP to save for your retirement, you should not overlook this important planning tool.
I have included the “Money Dates” and “Money Facts” sheets below, to give you important dates and numbers for all your accounts.
Feel free to reach out to me for a chat about the benefits of your RRSP or anything else!Money Dates 2018 Money Facts 2018