An RRSP allows Canadians to save for their retirement while deferring taxes during their high-income earning years. Speak with a Prospera advisor to learn more.

If tax season has got you down, RRSPs can help!

Are you missing the days when you received a tax refund? Let’s bring those days back.

Situation: Stephanie, a 30-year-old professional, makes $90,000 a year. She is tired of always owing money when it comes to tax season (who isn’t?!). She misses the days when she received refunds and wants to figure out a way to pay less in taxes.

Solution: Open an RRSP.

Like many of us, Stephanie has been wondering if there is a way that she can stop owing the government so much income tax each year. She’s noticed over the last few years that as her income goes up, her tax refunds have turned into balances owing. To figure out how to fix her problem, Stephanie set up a meeting with her Prospera Credit Union Financial Advisor, Brittney Schmitke. She learned that she gets an instant tax savings of 32 per cent and that all contributions come off her taxable income if she puts money into her RRSP account. When tax season comes around this year, Stephanie will be a lot happier thanks to her new RRSP account.

What is an RRSP?

A registered retirement savings plan allows Canadians to save for their retirement while deferring taxes during their high-income earning years.

What are the benefits of contributing to an RRSP before tax season?

There are many reasons why you should start contributing to an RRSP before tax season. You get an instant tax savings because all contributions that are made to an RRSP are deducted from your taxable income. Another benefit is that it could even drop you into a lower tax bracket.

Are there any other benefits to contributing to an RRSP?

Once you have made an initial contribution to an RRSP there are many ways for your money to grow tax sheltered. You can invest in savings accounts, term deposits, ETFs, mutual funds, individual stocks and bonds, and much more.

In Stephanie’s case, by making RRSP contributions, she is able to reduce taxes and go back to seeing refunds instead of balances owing. This kind of financial planning can be overwhelmingly helpful for your short-term and long-term needs. Prospera advisors can help you make the decision that’s right for you.

Comments are closed

Just Posted

Second osprey chick dies, Okanagan web cam off

The second chick in an osprey nest featured on the Town of Osoyoos website has died

Fire department helps with body recovery in Okanagan Lake

Penticton fire department assisted the RCMP with the recovery of a body Saturday

Police on scene at Skaha Lake

RCMP were at a what is believed to be a crime scene near Skaha Beach Sunday

Penticton student crowned Miss Teen B.C. Interior

Grade 12 student at Penticton Secondary School previously went through Miss Penticton program

Okanagan-Shuswap Weather: Summer sun for Sunday

The forecast for the week ahead shows some rain but plenty of sun and warm tempertures.

July showers wash out half of the Okanagan’s cherry crop

Cherry growers say this is the worst season they’ve seen in decades

A year later, ceremony commemorates victims of the Danforth shooting

It’s the one-year anniversary of when a man opened fire along the bustling street before shooting and killing himself

Japanese Canadians call on B.C. to go beyond mere apology for historic racism

The federal government apologized in 1988 for its racism against ‘enemy aliens’

Community service ordered for Princeton man who stole from firefighters

A young man who stole food and money from the Princeton Volunteer… Continue reading

Okanagan rainbow crosswalk defaced

Vandals cover colours with white paint in District of Coldstream sometime overnight Saturday

B.C. VIEWS: NDP pushes ahead with Crown forest redistribution

This isn’t the time for a radical Indigenous rights agenda

Two dead in two-vehicle crash between Revelstoke and Golden

RCMP are investigating the cause of the crash

Ottawa fights planned class action against RCMP for bullying, intimidation

The current case is more general, applying to employees, including men, who worked for the RCMP

Alberta judge denies B.C.’s bid to block ‘Turn Off the Taps’ bill

He said the proper venue for the disagreement is Federal Court

Most Read