Similar to the range of predictions about the markets and our economy, there are a lot of different views on RRSPs. We raise it now because the deadline to contribute this year is February 28th.
At their core, RRSPs are a tax-deferral strategy that helps you generate income in retirement. Some folks contribute to them with great zeal. Others have an allergic reaction to them. So, are RRSPs all they’re chalked up to be?
Here’s the perhaps unsatisfying answer: it depends.
It depends on your circumstances: on what your taxable income is today, on what other sources of income you expect to have in retirement, on what amount of time you have between now and your intended retirement date. Plus, should it be spousal or in your name? Should you be leveraging TFSAs instead of RRSPs?
Whatever tools you decide to use, the ultimate questions are these: when you retire, how do you keep yourself in a lower tax bracket? How do put yourself in a position to spend more money with less tax?
If you would like some advice, now is the time to book a conversation with us. As always, we are here to help.
