Money Minute: RRSP Hacks

Length 1:18

Jamie Golombek, Managing Director, Tax & Estate Planning, CIBC Financial Planning and Advice

"Let's talk about RRSPs beyond the basics. Here are five ideas you might want to think about. ”

“Number one: forget the RRSP altogether. In some cases a TFSA, or Tax-Free Savings Account, may be the better way to save for your retirement.”

“Number two: it's never too early to start an RRSP. For example, kids under the age of 18 who earn money through a part time or summer job may wish to set aside money in that RRSP that can grow later on, and they can claim a tax deduction when they're in a higher tax bracket.”

“Number three: what about using an RRSP to buy a first home under the Home Buyers' Plan, allowing you to draw up to twenty five thousand dollars from your RRSP, paying it back over 15 years.”

“Number four: what about using an RRSP to go back to school under the Lifelong Learning Plan, where you can withdraw up to ten thousand dollars per year or twenty thousand dollars total to finance full time education for you or your spouse.”

“And finally, number five: don't forget about the Spousal RRSP. If you're in a higher tax bracket and you think that on retirement your spouse or partner will be in a lower bracket, consider making a contribution to a Spousal RRSP to be able to effectively split income upon retirement.”