I'm certain you've been hearing a lot of buzz about RRSP season. With all the information coming from so many sources it can start to get confusing so I've decided to break it down into 4 easy to understand points:
- Your 2015 contribution to your RRSP is due February 29th, 2016 (thanks to the leap year!).
- Contributions to your RRSP are tax deductible. That means you minus them from your gross income and only pay year end income tax on the net amount.
- Your money will grow tax sheltered. That means that your contribution will grow without you having to pay tax on any earned interest or income (more money for you in the future).
- You contributions will grow compounding until age 71. Assuming a positive investment growth your money will grow gross of interest yearly. This means you grow your money with its new value at year end.
Hopefully this makes some sense! I'd love to help you understand it more!
Send me an email at firstname.lastname@example.org or call me anytime at 416-655-1069.