Why Invest in RRSP's?

To ensure a comfortable retirement, you should start by capitalizing on the great potential of a Registered Retirement Savings Plan. An RRSP is not only an attractive tax-saving proposition, but it is also one of your most important investment opportunities. Since tax reform has reduced the benefits of other tax shelters and has removed some investment deductions altogether, few other investments can match the RRSP protection against taxes and inflation.

Using an RRSP for retirement savings makes a lot of sense. Assuming an 8% return from interest, saving $2,000 per year will provide a portfolio valued at $157,909 at the end of 25 years. Unsheltered (Non-RRSP), however, would result in continuous tax-being paid over the investment period. Assuming a 40% marginal tax rate, the value of the portfolio would only be $97,321 - a $60,588 difference.

How much should you be contributing?

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Contact a Brown Financial representative today, and arrange a meeting to discuss your retirement plan.