While we all hope to have our personal finances in order all year long, a new year can give us a fresh start to change some of the areas that need improvement. This first post of the year should give you some ideas of what you can do to make 2010 the best year yet, [...]
The Canadian Source For Personal Finance
Category Archives: RRSP
What Is A Locked-In Retirement Account (LIRA)?
If you are in a registered pension plan with your employer and leave that company, your pension will be transferred into a Locked-In Retirement Account (LIRA). Locked-In Retirement Accounts are sometimes referred to as the more appropriate name of Locked-In Retirement Savings Plans (LRSP).
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LIRAs are similar to an RRSP, but as the name [...]
How To Use Spousal RRSPs To Split Retirement Income
A spousal RRSP is an RRSP that you make contributions to but the plan is registered in your spouse’s name. You get to claim the tax deduction and the income will be withdrawn by your spouse at retirement.
If your and your spouse’s income are about the same, and you both have similar pensions and RRSP [...]
Contribute To RRSP or Pay Down Mortgage?
This might be the most asked personal finance question in Canada, should you contribute to an RRSP or pay down your mortgage? Most people would lean towards putting money into an RRSP because of the tax credit and the possibility of a higher return.
When considering the tax benefits of the RRSP option, some people don’t [...]
Use Your Raise To Increase Your Savings
A common reason given for not saving or investing is that there is no available money after all the bills and expenses are paid. By simply increasing your savings by the amount of your raises, you can quickly build up a nest egg without noticing any change in your lifestyle or spending habits.
Since your raise [...]
Withholding Tax on RRSP Withdrawals
Earlier this week, when discussing withdrawing RRSPs before retirement, I mentioned withholding tax but never went into detail. Withholding tax is the amount that the bank is required to submit to the CRA on your behalf. Since withdrawn RRSPs are considered income in that year, the withholding tax is similar to your employer withholding a [...]
Withdrawing RRSPs Before Retirement
Yesterday I discussed the Lifelong Learning Plan, were you can withdraw money from your RRSP for educational purposes. What if you need to withdraw more money from you RRSP to go back to school? What if you wanted to supplement a maternity leave with money that is in your RRSP? Or in the case of [...]
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