A tax shelter for your future

Save on tax, save for the future

WHAT ARE THEY?
Registered Retirement Savings Plans (RRSPs) offer a temporary tax shelter to Canadians while saving for retirement. First created to encourage Canadians to save for the future, they have become one of the most popular savings options for Canadians and can combine many investment choices from mutual funds to GICs.

WHO CAN CONTRIBUTE?
Governed by Canada Revenue Agency, RRSPs are available to anyone who has earned income, has a SIN, and has filed a tax return can contribute to an RRSP (until the end of the year in which they turn 69).

FLEXIBILITY
Though you are responsible for taxes on your savings at the time they're withdrawn, you may be earning less income at retirement, and therefore pay less tax. The federal government also offers programs like the Home Buyers Plan or Lifelong Learning Plan, which allow you to borrow funds tax-free from your RRSP for a specified period of time.

You may contribute as much as 18% of your earned income in the previous tax year, up to $18,000 for 2006. Your contribution room is reduced by pension adjustments from the previous year, but is increased by carry-forward contribution room from other years (your notice of assessment from the previous year will tell you how much you are allowed to carry forward).

INCORPORATE INTO YOUR FINANCIAL GOALS
The best reason to save for the future: you. Once retired, all of your hard work pays off. Free from the bonds of employment, you are now able to have the lifestyle you've worked hard to achieve for so many years.

Your Rice Financial advisor has a variety of investments for you to choose from, and can offer advice on tax-saving strategies and how much you need to finance the retirement you want. Visit your advisor for more information on this and other investment and insurance opportunities.