BMO Nesbitt Burns
390 Bay Street
Elgin Tower, 5th Floor
Sault Ste. Marie, ON
Registered Retirement Savings Plan
A contribution to the life you want
The whole notion of retirement is changing. So is retirement planning. There is some debate as to how much you’ll need to retire comfortably. A standard rule-of-thumb suggests you’ll need 70 percent of your pre-retirement income to maintain a comparable standard of living. But there is no "standard” retirement these days. Your plans and dreams will differ from others. However, it is increasingly apparent that the vast majority of this income will need to come from personal savings such as RRSPs.
The RRSP solution
Registered Retirement Savings Plans (RRSPs) provide you with an exceptional opportunity to save for your retirement. Not only are your RRSP contributions tax deductible, but all of the income earned on those contributions compounds on a tax-deferred basis.
A Self-Directed RRSP enables you to maximize your retirement savings by allowing you to select from a wide variety of qualified investments in order to enhance your investment returns. A Self-Directed RRSP also provides you with control and flexibility to alter your investments as market conditions or your personal circumstances change.
A Spousal RRSP is an RRSP registered in your spouse's name while you, as the contributing spouse, take a full tax deduction for all the contributions you make to the plan. You would establish a spousal RRSP for income splitting purposes if you believe that your spouse's income during retirement will be lower than your own. The assets in a spousal RRSP are considered the property of the plan holder (your spouse) and withdrawals will be taxed at his/her marginal rate. Spousal RRSPs are one of the few income splitting opportunities still available for Canadian taxpayers.
For more information on the Registered Retirement Savings Plan, please contact us for an appointment.