canadian cash money

RRSP Season is Here Once Again

As everyone knows, RRSPs are in important tool in saving for retirement. Any contributions made to a RRSP are tax deductible, meaning you save the income tax for any contributions made to a RRSP. This year’s deadline for the 2021 tax year is March 1, 2022. Any contributions made before this date can be used against your 2021 income. Often this will result in a tax refund once you file your taxes. We highly recommend doing something “financial” with any refund generated. One great idea is investing within a TFSA, where future gains will be sheltered from ay taxes (this can also lead to some tax free retirement income). Another idea is to use the refund to pay down long term debts like your mortgage. If you opt to buy “stuff” with your refund, all you have done is make your retirement more taxable and purchased depreciating goods with the up front savings. 

RRSPs are also not for everyone. A lot depends on your income each and every year. If you income fluctuates a great deal year to year, it’s worth a conversation with us as to what the best options are for you.

How to contribute to your RRSPs:

  1. You can contribute via cheque. Drop off at our office anytime. This year, it’s a good idea to call ahead before you stop by to ensure someone is free to receive your cheque. 
  2. You can have us pull the funds from your bank account. As long as we have linked your bank account in the past, we can use this method. Simply call the office and we can confirm if we can pull funds and which account we have authorized.
  3. You can contribute via online banking in the bill payments section. Simply e-mail is if you’ve never used this method and we can send you instructions and the proper account number to use. 
  4. If you income is generally steady, it’s always best to try to contribute regularly. The easiest way is to tie your contributions with your pay cheque. After a while you will adjust and not even notice you are contributing.

This information has been prepared by Raymer Financial who is an Investment Advisor for iA Private Wealth Inc. and does not necessarily reflect the opinion of iA Private Wealth. The information contained in this document comes from sources we believe reliable, but we cannot guarantee its accuracy or reliability. The opinions expressed are based on an analysis and interpretation dating from the date of publication and are subject to change without notice. Furthermore, they do not constitute an offer or solicitation to buy or sell any of the securities mentioned. The information contained herein may not apply to all types of investors. The Investment Advisor can open accounts only in the provinces in which they are registered. 

iA Private Wealth Inc. is a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada. iA Private Wealth is a trademark and business name under which iA Private Wealth Inc. operates.