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

Day 1 underway at 2019 Minto Cup in Langley

Coquitlam and Orangeville out ahead after the first day of action at Langley Events Centre

‘Potentially life-threatening’ injuries in overnight Surrey crash

Police had Highway 10 between 180th and 186th streets closed for several hours

Abandoned house blaze worries Langley neighbours

Redevelopment area of Willowby attracts squatters and partiers, and fires fear area residents

Support granted for NatureKids

Program provides opportunities for youth and families to learn about and enjoy the outdoors

Grillers compete for best meat in Langley

Rotary Clubs bring back RibFest for a second year from Aug. 16 to 18 at McLeod Park

VIDEO: Caffeine and Gasoline rolls into Langley Saturday morning

Facebook group for car enthusiasts have impromptu gatherings around the Lower Mainland

Young balance-bikers race in B.C.’s inaugural Strider Cup

The course has several obstacles including ‘Mount Scary’ and the ‘Noodle Monster’

Canadians killed in Afghanistan honoured during emotional dedication ceremony

One-hundred-fifty-eight Canadian soldiers died during the mission

It’s snow joke: Up to 30 cm of snow expected to fall in northeastern B.C.

Alaska Highway, Fort Nelson to be hit with August snowstorm, according to Environment Canada

‘I’m just absolutely disgusted’: Husband furious after B.C. Mountie’s killer gets day parole

Kenneth Fenton was sentenced to prison after he fatally struck Const. Sarah Beckett’s cruiser

Sea-to-Sky Gondola in B.C. likely out of commission until 2020

Sea to Sky Gondola carries between 1,500 and 3,000 people every day during the summer season

Helicopter-riding dog Mr. Bentley now featured on cans of new B.C.-made beer

Partial proceeds from every pack go to Children’s Wish

PHOTOS: Weapons seized at Portland right-wing rally, counterprotests

Not all who gathered Saturday were with right-wing groups or antifa

Maple Ridge’s first retail cannabis store opens Monday

Spiritleaf is just the second private pot shop in the Fraser Valley

Most Read