An RRSP allows Canadians to save for their retirement while deferring taxes during their high-income earning years. Speak with a Prospera advisor to learn more.

If tax season has got you down, RRSPs can help!

Are you missing the days when you received a tax refund? Let’s bring those days back.

Situation: Stephanie, a 30-year-old professional, makes $90,000 a year. She is tired of always owing money when it comes to tax season (who isn’t?!). She misses the days when she received refunds and wants to figure out a way to pay less in taxes.

Solution: Open an RRSP.

Like many of us, Stephanie has been wondering if there is a way that she can stop owing the government so much income tax each year. She’s noticed over the last few years that as her income goes up, her tax refunds have turned into balances owing. To figure out how to fix her problem, Stephanie set up a meeting with her Prospera Credit Union Financial Advisor, Brittney Schmitke. She learned that she gets an instant tax savings of 32 per cent and that all contributions come off her taxable income if she puts money into her RRSP account. When tax season comes around this year, Stephanie will be a lot happier thanks to her new RRSP account.

What is an RRSP?

A registered retirement savings plan allows Canadians to save for their retirement while deferring taxes during their high-income earning years.

What are the benefits of contributing to an RRSP before tax season?

There are many reasons why you should start contributing to an RRSP before tax season. You get an instant tax savings because all contributions that are made to an RRSP are deducted from your taxable income. Another benefit is that it could even drop you into a lower tax bracket.

Are there any other benefits to contributing to an RRSP?

Once you have made an initial contribution to an RRSP there are many ways for your money to grow tax sheltered. You can invest in savings accounts, term deposits, ETFs, mutual funds, individual stocks and bonds, and much more.

In Stephanie’s case, by making RRSP contributions, she is able to reduce taxes and go back to seeing refunds instead of balances owing. This kind of financial planning can be overwhelmingly helpful for your short-term and long-term needs. Prospera advisors can help you make the decision that’s right for you.

Comments are closed

Just Posted

Memorial plaques stolen from Kelowna cemetery

Four plaques were stolen from Lakeview Memorial Gardens earlier this week

Kelowna to host sustainable food industry summit

Kelowna will soon host a summit on how the food industry can reduce its climate impact

UBC Okanagan professor details local wildfire risks

Associate professor David Scott gives answers for the Okanagan’s wildfire season

Bike Skills Park in Kelowna is set to reopen

Cyclists can test the upgraded jumps on July 23

Kelowna Falcons swept in series finale

Kelowna battled back yet again but fall 11-8 to the Wenatchee AppleSox

Fashion Fridays: 5 casual summer dress styles

Kim XO, helps to keep you looking good on Fashion Fridays on the Black Press Media Network

Bank of Canada lowers qualifying rate used in mortgage stress tests

Home sales softened last year after the federal government introduced new stress test rules for uninsured mortgages

Health: Living longer, a myth?

A new column to Black Press from CHIP HealthLine Solutions

Couple found dead along northern B.C. highway in double homicide

Woman from the U.S. and man from Australia found dead near Liard Hot Springs

B.C. man pleads guilty in snake venom death of toddler

Plea comes more than five years after the incident in North Vancouver

Trudeau says Ottawa open to proposals for B.C. refinery as gas prices soar

Prime minister says he knows B.C. residents are struggling and the federal government is open to ideas

Monster truck action hits Okanagan

Penticton Speedway hosting two nights of racing and monster truck action

Okanagan man says stem cell therapy changed his life

Darryl Brewer says he went from being immobile with chronic pain to leading an active lifestyle

Clock’s ticking to share how you feel about Daylight Saving Time in B.C.

Provincial public survey ends at 4 p.m. on Friday

Most Read