Article provided by: Money Walk
Most people have a goal of financial freedom and security for their future. A registered retirement savings plan, RRSP in Calgary, is an investment plan that provides a way to save for retirement. The first RRSP accounts were introduced in 1957. They offer a retirement savings option for employees as well as for those who are self-employed.
How Does an RRSP Work?
A registered retirement savings plan is an investment vehicle that may consist of savings and investments. It offers some tax advantages over typical investment accounts. There are three main types of RRSP in Calgary. The three types are individual, spousal, and group RRSP. An individual RRSP is generally for those who are not married and has specific contribution limits. A spousal RRSP is for couples where the spouse will contribute to a plan for their partner. A group RRSP is generally part of an employer plan where deductions from your salary pay for the investment plan.
Benefits of an RRSP in Calgary
There are several benefits of choosing an RRSP over other types of savings plans. The RRSP is specifically for retirement savings. You will enjoy tax benefits, and those who contribute to a plan may be eligible for tax credits. RRSP funds are tax-free until you withdraw them. You can contribute throughout your entire life through age 71. An RRSP can include various types of investment options, including savings bonds, mutual funds, GIC, ETFs, bonds, equities, and Canadian mortgages. There is a limit to the amount you can contribute each year. However, you can carry over the unused portion to the next year.
Do I Need an RRSP in Calgary?
Everyone should have some type of retirement savings plan in place, and an RRSP is one of the best options. You can get one through your employer, but you can also get one independently. This can be extremely beneficial since you may not continue to work for your employer for an extended period. A financial expert can help you choose the type of RRSP that is best for your particular situation. In general, you want to put money into an RRSP and leave it there until you retire, or you will need to pay taxes. The sooner you start a retirement savings plan, the better.
Create a Financial Path
An RRSP in Calgary is one part of your financial path. At Money Walk, we help you with all your financial choices so you can get on a path that will give you financial freedom and help you reach your goals. We will assist you in creating a debt reduction plan, along with savings plans for education and retirement. We evaluate your financial situation and assist with the options that will help you get on track and gain control over your money. We are a part of the Experior Financial Group, one of the most respected financial companies in Canada. Contact us today to learn more about our products and services and to get information from financial experts so you can make important decisions that will impact you and your family for years to come.