Does an RRSP work for you?
Considering an RRSP? These tax-advantaged accounts offer compelling benefits for long-term wealth building:
- Tax Reduction: Lower taxable income with pre-tax contributions.
- Flexibility: Carry forward unused contribution room indefinitely.
- Tax-Deferred Growth: Allow investments to compound without annual tax drag.
- Income Splitting: Share withdrawals with a spouse to optimize retirement taxes.
Key Considerations
While powerful, RRSPs may not suit short-term goals due to taxable withdrawals. At death, remaining funds are fully taxable, so strategic planning is essential. The right approach depends on your income level, retirement timeline, and broader tax strategy.
Let’s determine if an RRSP aligns with your financial future. Book a consultation RBC Wealth Management or email me at pejman.shabanpourfard@rbc.com.
