Tip #1

Start early. Make your contributions as soon as possible in your working career and benefit from long-term compounding.

Tip #2

Contribute as much as you can on a regular basis. Instead of scrambling at the end of the year for thousands of dollars, contribute to your RRSP with every paycheque or once a month. You will start earning tax-sheltered income right away.

Tip #3

Don't miss a year. Even one year can have a significant impact on your retirement savings.

Tip #4

Contribute at the start of the month rather than at the end. The long-term effect of contributing 30 days earlier each month can be substantial.

Tip #5

Use your RRSP for more than just retirement. Some Canadians are using their registered savings

• To fund education-you can withdraw a maximum of $20,000 from your RRSP over a four-year period to enroll in a qualifying educational program. Repayment to your RRSP must be completed within 10 years.
• To buy a house-if you are a first-time home buyer, you can withdraw up to $20,000. All withdrawals have to be paid back to an RRSP within 15 years.
• As a cash reserve-in an emergency, you can withdraw funds from your savings account. In this case, all withdrawals are subject to income tax.

Privacy | Disclaimer | Site map | All contents are copyright © 2008 by Envision Financial