In your 50s? Avoid the RRSP tax trap

“For most, hitting your 50s is a period marked by expanding waistlines, mounting aches and pains and the first genuine bouts of nostalgia. It is also the time to get serious about establishing a retirement nest egg. Most Canadians earn more money in their 50s than in any other decade, a statistic that, when combined with a honed investment strategy and a retirement game plan, can make for a very lucrative window of opportunity.” Simon Avery writes in his special for the Globe and Mail. “Unfortunately, not everyone makes the necessary adjustments to their investing strategy at this milestone, which can prove to be a costly oversight. RRSPs serve as a good step in bridging the gap between expenses and government payments in retirement (see chart). But getting prepared for retirement is not as simple as opening an RRSP account and making an annual contribution. ‘The industry has taught us to think about how much money we have accumulated in our RRSP. But it’s really all about the plan,’says Doug Dahmer, founder and chief executive officer of Emeritus Financial Strategies, in Burlington, Ontario” continues Avery.   Read the full article here. | Raymond Matt, CFP, CLU, TEP, CHS

Post a Comment


Subscribe to: Post Comments (RSS2)