When used to its full advantage, an RRSP can be a powerful tool that can save you money on your annual tax return while helping your savings grow.

An RRSP is a registered account that allows you to make tax-deferred contributions towards your retirement savings plan. Subject to certain limits, each dollar you contribute to the plan lowers your taxable income by the amount you invest.

The goal is to defer your tax payments on the money you contribute until you’ve retired, at which point you will most likely be in a lower tax bracket.

When creating an investment plan, we can help you determine the best strategies for meeting your financial goals. A few things that you should keep in mind include:

1 – Talk to a financial advisor
2 – Start as early as possible and invest regularly
3 – Diversify your portfolio and increase foreign content exposure
4 – Use available contribution room
5 – Consider income splitting