RRSPs – one way to be wise with money!

February 16, 2017Living in Retirement

Being wise with money should include a financial plan that accounts for your retirement.  We’ve all heard the old adage, “When you don’t know where you’re going any road will do.” Far too many Canadians seem to be living this way when it comes to their retirement.

It’s wise to plan for the future – in particular your retirement – this is part of having a long term plan.

• We know that HALF of Canadian couples between 55 and 64 have no employer pension between them and HALF of that group only have enough savings to last for ONE year. (Report released by the Broadbent Institute February, 2016)
• According to CBC News and an RBC survey, 1 in 6 Canadians, aged 55 or older, haven’t started retirement saving yet.

It’s wise to take advantage of RRSP’s and TFSA’s – these are great savings and investing vehicles for Canadians.

• Both of these government programs offer tax advantages – allowing your money to grow tax free using a wide variety of investment options.
• Each may be used differently and a financial advisor can show you how both are fantastic saving and investing tools.

RRSP Facts:

• Savings grow tax free
• A spousal RRSP can reduce your combined tax burden
• You can borrow from your RRSP to buy your first home or pay for your education
• You can convert your RRSP to get regular payments when you retire
• Best of all … your contributions are tax deductible

We know that people who work with a financial advisor to create a plan for being wise with money are more likely to reach their financial goals. According to The Financial Planning Standards Council (FPSC)

18% of those with no planning feel they are on track to reach their desired lifestyle in retirement compared to 51% of those with comprehensive integrated planning.

For customized financial planning strategies contact your FaithLife Financial Representative who will help you identify your needs, put a plan in place and then help you follow that plan so you can be wise with money and feel confident about your financial future.