An RRSP allows Canadians to save for their retirement while deferring taxes during their high-income earning years. Speak with a Prospera advisor to learn more.

If tax season has got you down, RRSPs can help!

Are you missing the days when you received a tax refund? Let’s bring those days back.

Situation: Stephanie, a 30-year-old professional, makes $90,000 a year. She is tired of always owing money when it comes to tax season (who isn’t?!). She misses the days when she received refunds and wants to figure out a way to pay less in taxes.

Solution: Open an RRSP.

Like many of us, Stephanie has been wondering if there is a way that she can stop owing the government so much income tax each year. She’s noticed over the last few years that as her income goes up, her tax refunds have turned into balances owing. To figure out how to fix her problem, Stephanie set up a meeting with her Prospera Credit Union Financial Advisor, Brittney Schmitke. She learned that she gets an instant tax savings of 32 per cent and that all contributions come off her taxable income if she puts money into her RRSP account. When tax season comes around this year, Stephanie will be a lot happier thanks to her new RRSP account.

What is an RRSP?

A registered retirement savings plan allows Canadians to save for their retirement while deferring taxes during their high-income earning years.

What are the benefits of contributing to an RRSP before tax season?

There are many reasons why you should start contributing to an RRSP before tax season. You get an instant tax savings because all contributions that are made to an RRSP are deducted from your taxable income. Another benefit is that it could even drop you into a lower tax bracket.

Are there any other benefits to contributing to an RRSP?

Once you have made an initial contribution to an RRSP there are many ways for your money to grow tax sheltered. You can invest in savings accounts, term deposits, ETFs, mutual funds, individual stocks and bonds, and much more.

In Stephanie’s case, by making RRSP contributions, she is able to reduce taxes and go back to seeing refunds instead of balances owing. This kind of financial planning can be overwhelmingly helpful for your short-term and long-term needs. Prospera advisors can help you make the decision that’s right for you.

Comments are closed

Just Posted

Langley volleyball player helps secure bronze in Puerto Rico

Women medal at NORCECA, while men’s team is playing the worlds in Hiroshima, Japan

LETTER: Fort Langley festival reminds us to be thankful

Heartfelt thanks go out to event organizers

VIDEO: Thanksgiving Day crash in Langley sent a few to hospital

UPDATE: No one believed seriously injured in head-on accident at 232nd Street and Fraser: Mounties

ON COOKING: Embrace the experience, from beginning to end

A passion for cooking can easily be rekindled according to this chef and culinary instructor

Langley pioneers remember heritage buildings

Ahead of November’s Douglas Day banquet, Fred Pepin speaks to importance of preserving local history

B.C.’s rural paramedic program expands, with home support

Advanced care ambulance staff added for six communities

VIDEO: Townhouse fourth Maple Ridge blaze in less than a day

UPDATE: Fire victims have much to be thankful for, despite loss of pets on Thanksgiving Day

BC Ferries sees steady traffic of post-Thanksgiving weekend travellers

Ferries filling up fast, sailing waits at some terminals

‘Save the kids!’ Dorian survivor tells the harrowing story of his Canadian wife’s death

Family held a funeral and placed Alishia Liolli’s remains in a niche at a cemetery in Windsor, Ont.

Okanagan woman, 91, votes at advance polls despite broken hip, shoulder and wrist

Angela Maynard has voted in almost every election during her lifetime

Heiltsuk Nation open first Big House in 120 years in northern B.C.

Opening means the community now has an appropriate space for spiritual and ceremonial events

Singh says NDP would form coalition with the Liberals to stop Tories

Singh was in a Liberal-held riding Sunday afternoon in Surrey where he was pressed about his post-election intentions

BC Ferries filling up fast with post-Thanksgiving weekend travellers

Monday anticipated to be busiest day of the weekend

The one with the ‘Friends’ photoshoot: Kelowna group recreates TV show intro

A friend’s departure prompted them to create something that really says, “I’ll be there for you”

Most Read