Regardless of your age, you need to have a financial plan in place that includes savings for retirement. A registered retirement savings plan, RRSP, is a plan that is registered with the Canadian government. There are several types of plans, including individual, spousal, and group RRSPs in Calgary. A qualified financial professional will assist you in choosing the best options for your savings plans.
How Do Group RRSPs in Calgary Work?
Group RRSPs in Calgary are among the most popular kinds of retirement plans available. A group plan simply means that other people are part of the investment program. You contribute a specific amount to the plan regularly. The government does not tax the contribution so that you can get some significant monetary benefits. An RRSP can be held as cash or as part of an investment such as guaranteed investment certificate, savings bonds, bonds, mutual funds, exchange-traded funds, Canadian mortgages, and equities. These investments will increase the value of the RRSP over time.
Benefits of Group RRSPs in Calgary
The most significant advantage of an RRSP is the tax reduction that you will enjoy. The money you put into the plan does not count towards taxable income, and therefore, it can lower your taxes. You don’t get taxed on the money unless you withdraw it from the fund. You can generally take the money out at any time, but you will get the most benefit when you leave the money in until retirement or age 71. There are limits to the amount of money you can contribute each year. If you contribute less one year, you can rollover the difference and add more to the fund the following year if you want.
Do I Need an RRSP?
Group RRSPs in Calgary are meant to be long-term investment vehicles. Anyone over the age of 18 can obtain an RRSP as long as they are employed. You can get one through your employer or a financial institution or bank. Currently, the RRSP contribution limit is 18% of earned income. You can usually set up an automatic deduction for your contribution so that it is easy to put aside the money for the fund. You can put aside as much or as little as the plan allows, as long as you don’t exceed the limits.
Call Money Walk
You can get additional information about RRSPs from the experts at Money Walk. Money Walk is a part of the Experior Financial Group, a leading Canadian financial services company. We will help you create a roadmap for financial success that includes savings programs such as retirement plans and others. We work with you to help you reduce your debt and get on a path towards financial freedom. We will help you reach your goals and put methods in place to save for your future. We are here to answer your questions and give you information so you can make decisions that are critical to your financial achievement. Contact us today to learn more about our products and services.