With just hours to go in this year’s RRSP deadline, emphasize retirement savings over debt repayment
Get clients to start planning for next year’s RRSP season
Paying down low-interest debt, such as a mortgage, can negatively impact retirement savings, says CIBC’s Jamie Golombek
Clients are worried about the effects of the declining Canadian dollar and the impact of falling oil and metals prices
The median contribution was $3,000, up 2.4% from 2012
80% of families with RPPs also had RRSPs/LIRAs, compared with 55% of families without pensions
Help clients do more with their retirement savings
Tax rules allow for inadvertent overcontributions to a client's RRSP, which can grow tax-free for decades. But there are strict limits on the amount - and anything in excess of that could generate substantial penalties
Cross-border tax practitioners are applauding a decision by U.S. tax authorities. Americans in Canada now will receive an automatic tax deferral on the income they earn within an RRSP or registered retirement income fund (RRIF) without having to make an annual tax filing. “Clearly, there’s no anti-avoidance going on with Americans owning RRSPs,” says Jamie […]
As politicians look at forcing Canadians to save more for their retirement by supplementing forced pension programs, a paper published by the C.D. Howe Institute, a Toronto-based think-tank, says the solution is right in front of us: the venerable RRSP. In a paper released in mid-September, Alexandre Laurin, associate director of research with the C.D. […]