Click HERE to view the full version of our Investor Update.
Tax Deadline Looming - The deadline for your 2017 tax deductible RRSP contribution is March 1st, 2018. The deadline for filing your personal tax return for 2017 is April 30th, 2018.
TFSA or RRSP? - Choose a RRSP when your pre-retirement income is much higher than your expected post-retirement income. Choose to invest in a TFSA first when your pre-retirment income is lower than you expct your post-retirement income to be. Choose a TFSA/RRSP combination if you expect your pre and post retirement income to be roughly equal, maximzing your TFSA contributions first.
Why Contribute to a RRSP? - RRSPs are useful for deferring tax on long-term savings for retirement. Contributions to the plan are tax deductible against income. Investments held within a RRSP are tax sheltered as long as they remain in the plan. Tax is deferred until money is withdrawn from the plan - ideally, when the account holder is in a lower tax bracket post-retirement.
The Advantage of TFSA Investing - TFSAs are a tax free investment vehicle offering the account holder tax free growth, income, and withdrawals from investments held within the account. Unlike a RRSP, there are no tax deductions on contributions made to a TFSA, but the annual contribution room can be carried forward and any amount withdrawn can be re-contributed the following year.
Click HERE to access the full pdf version of our Investor Update.