It has been a year to remember, but it’s also worth bearing in mind that the Registered Retirement Savings Plan (RRSP) contribution deadline is just around the corner. The RRSP contribution deadline for the 2020 tax year is March 1, 2021, meaning there’s just over a month left to make a contribution for 2020.
Contributing annually to an RRSP will enable you to reduce the tax you pay on your current employment income. As well as being tax deductible, annual contributions to an RRSP will grow, tax free, keeping you ahead of inflation and maintaining valuable purchasing power for your retirement years. All RRSPs share the same basic features of tax deductibility and tax deferral, but they vary in terms of flexibility and control of investments, risk and return.
A wide range of investment choices exists for all types of investors — from the most aggressive (who will buy mutual funds invested exclusively in equities) to those primarily interested in guaranteeing their principal (who might lean towards fixed-income plans), to those beginning the process of building an investment base.
If you’ve got questions about RRSPs, we’d be happy to help you. Call your neighbourhood branch today to discuss your RRSP options.
Source: Credit Union Central of Manitoba