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.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Comments are closed

Just Posted

Oliver woman reflects on prestigious win at Westminster dog show

“Polly” the Scottish deerhound was crowned best in breed and reserve best hound.

Lake Country singer advances to Top 25 in Okanagan’s Got Talent

Payton Bischoff will be performing on Feb. 23 in Vernon

Okanagan School of the Arts launching first exhibit of 2020

“The work we’ve received is incredibly colourful and vibrant…” - OSA executive director, Kim Palmer.

South Okanagan mountain bore racist name for a half century

Nkawala Mountain was initially named in connection with the deaths of two black men.

The tragic tale of two Summerland men who perished on Christmas Day 1908

More than a century later, the events surrounding the men’s deaths are still somewhat of a mystery.

Kelowna’s Family YMCA opens doors on Family Day

The entire day was free for the community

Canucks acquire forward Tyler Toffoli from Kings in push for playoffs

Vancouver sends Schaller, Madden, pick to L.A.

RCMP report woman arrested after ramming police cruiser

Suspect wanted for crimes allegedly committed in Kelowna, Salmon Arm and 100 Mile House

New highway proposed between Alberta and B.C.

The route would connect Red Deer to Kamloops

Wet’suwet’en and B.C. government have been talking Aboriginal title for a year

Coastal GasLink says it has agreements with all 20 elected First Nations councils along the 670-kilometre route

Trudeau tightlipped on plan to end protests ‘quickly and peacefully’

The prime minister, who cancelled a two-day trip to Barbados this week to deal with the crisis at home

B.C. budget expected to stay the course as economic growth moderates

Finance minister said ICBC costs have affected budget

Canadian standards for coronavirus protection to be reviewed, health agency says

The protocols set out how health workers should protect themselves and their patients

Kelowna RCMP arrest alleged impaired driver

The driver is facing potential charges after power pole collision

Most Read