21 Essential Tips you need for your RRSP Success… Part 2
Welcome to the 2013 RRSP Season.
It is that time of year again when RRSP commercials dominate the airwaves, and in its celebration, we have created 21 Essential Tips you need to know for your RRSP Success.
Over the next 21 days we will be adding one tip per day to help you better understand RRSP’s and we Guarantee you will find at least one thing you didn’t know before.
To get your daily dose of RRSP Tips, you need to follow Steffen deGraaf on Twitter, and daily you will learn one new aspect of this very popular Canadian Investment Vehicle.
Here are the first 3 tips, the most basic ones always start the series, so make sure you follow, to get the more in depth tips and tricks by the end of the series.
You will be glad you did…
RRSP Tip 4.
RRSP with a GMWB Guarantee. Confused? Receive a 5% Bonus or the Market value in Saving Years, and Lifetime Income at Retirement.
RRSP Tip 5.
RRSP to RRIF. You can’t just Save forever, at your max age of 71, you must convert your Savings program into an Income program.
RRSP Tip 6.
You can use a portion of your RRSP for the down payment on your home purchase, if you are a first time home buyer.
RRSP Tip 7.
Your Maximum contribution limit for 2012 Tax year is $22,970. But you may be eligible for more if you have carry forward room.
RRSP Tip 8:
The RRSP Deadline for the 2012 Tax year is Thursday February 28th. That is only 13 days away. Beat the Rush and Invest today…
RRSP Tip 9.
Start your RRSP as young as you can. Small contributions when you are young will compound beyond your greatest expectations…
RRSP Tip 10.
How to have $1 Million at Retirement? If your 25, save $400 per month, at 35 $600 per month, and at 45 you need $1500 per month
RRSP Tip 11.
Self directed RRSP’s. You can also run your own RRSP account, with say, an eTrade account and get the benefit of low admin fees
RRSP Tip 12.
Tax treatment of RRSP Withdrawals. When you take money out of your RRSP it is viewed as Income by Revenue Canada, and taxed…
RRSP Tip 13.
Spousal RRSP’s. When you open and contribute to an RRSP in your spouses name, you receive the Tax Deduction for the deposit!
RRSP Tip 14.
Make sure you have a primary beneficiary listed on your RRSP, usually your spouse, but don’t forget about a contingent as well.
RRSP Tip 15.
Transfer your RRSP. You may only transfer your RRSP to your spouse or dependent child. All else must pay full tax on transfer.