Browsing Tag

retirement savings

Investing

Is It Wise To Put Money Back Into An RRSP After A Withdrawal?

If you had to withdraw funds from your RRSP in 2010, the good news is that you still have until March 1, 2011 to make a contribution to help offset your withdrawal. Although you will never get your contribution room back for the amount you took out, at least you won’t suffer as many tax penalties by putting some or all of the money back.

However, before you decide to put the money back, make sure that you can truly afford to do so. If you don’t already have some money set aside for emergencies, then it is probably better to refrain from adding any additional money into your RRSP. Why? Because you are just as likely to end up having to make another RRSP withdrawal and then it defeats the purpose of contributing to an RRSP altogether. Just be prepared to pay some tax in the Spring.

January 6, 2011

Investing

Start Saving For Retirement When You Are Young

Have you ever stopped to think about how long your retirement may last? For some people, retirement can be as much as one third of their lives! That can be a daunting thought considering we need to prepare for retirement during our working years and hope we have saved enough.

Due to advanced technology in the healthcare field, it is much easier for many folks to live a lot longer than they might have anticipated. In order to prepare thoroughly, we must start saving for retirement as soon as possible.

January 4, 2011

Investing

Women And Retirement

There is a lot of dialogue these days about women and retirement. The word out there now is that women need to save a lot more than men for some key reasons. As a rule, women generally live longer than men, so for that reason women really should be tucking extra away in their RRSPs and other retirement savings accounts.

Another key reason is that women often earn less than men, partly because they take time off to have children, but also because there is still a disparity between men’s and women’s wages. Men are generally still paid more than women for the same work. This makes it harder for women to save as much as men for their retirement.

December 29, 2010

Investing

When Is It A Good Idea To Have An RRSP?

Most Canadians are aware of the existence of Registered Retirement Savings Plans (RRSPs) but they really do not know much about how they actually work or how they can use them to benefit them fully. Until just a few years ago, I thought that once you turned age 65, you were allowed to take the money out of them. How little did I know! Unfortunately most Canadians are still in the dark about RRSPs and when it is wise to use them.

RRSPs can be especially useful for regular employees who pay a lot of tax on their employment income. By contributing to an RRSP, they are allowed to defer their income tax. They benefit from lower taxes payable now, and then will expect to pay it later when they withdraw it (presumably when they retire and are at a lower tax bracket).

December 5, 2010

Taxes

Withdrew Money From Your RRSP in 2010? You Might Have An Unexpected Tax Bill

With the economy still uncertain, some Canadians have turned to their Registered Retirement Savings Plan (RRSP) as a source of funds. But there could be tax consequences on your 2010 tax return.

Lose your tax shelter: RRSPs are designed to help Canadians save for retirement and provide a tax shelter for the funds. You lose the sheltering benefits when you make a withdrawal.

November 27, 2010

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