When clients come to us and ask how they can best invest in their future, we often recommend they consider an RRSP. Kamloops citizens can invest their money into this special type of savings account that is set aside for retirement, and get some great tax benefits along the way. Here’s what you need to know about the benefits of this move.
What Is an RRSP? Your Kamloops Advisor Has the Answer!
An RRSP, or Registered Retirement Savings Plan, is a government-registered account that is legally considered a trust fund. You contribute to the RRSP account that you’ve invested in, and in turn, your trust fund, which has been earmarked for retirement, earns you many benefits.
The Benefits of an RRSP
If you are considering investing in an RRSP in Kamloops, here are some of the benefits you can expect to enjoy:
- Tax deferment on the RRSP growth: While the profit made on your investment isn’t taxed right away, that doesn’t mean it is tax-free money. You do have to pay taxes on that money when you withdraw it for retirement, but this can mean a huge savings in your tax bill. If the money were to be taxed as your investment grows, it would be taxed on your current income. When you retire however, your income is usually lower, so your taxes are also lower.
- Tax credits for your current income taxes: Another benefit of opening an RRSP in Kamloops is that you get tax credits to reduce how much you pay in income taxes right now. This is a way to encourage you to invest more into your RRSP, because being ready for retirement saves the government money in the future.
- Easy qualification process: You may think that a government-registered investment program would require that you meet certain requirements. However, investing in an RRSP is fairly simple. As long as you are under 69, file income tax with the Canadian government, and can meet the minimum contribution limits for your investment, you can open an RRSP in Kamloops.
These benefits are very attractive to those looking to create a stable retirement fund.
Contact Us to Learn More
If you are interested in getting your retirement funded today, contact us to learn more about RRSP accounts, and how this investment could be the right move for you. Contact our office at 778-470-3100.