Get your RRSP going now
A Registered Retirement Savings Plan allows you to save for retirement while deferring income tax on current income. Your contributions are tax-deductible and the income you earn is tax-sheltered. If you are a Canadian taxpayer, 71 years of age or younger; and you have earned income or special income, you are eligible to open an RRSP. Non-residents who pay Canadian income taxes also qualify.
Spousal Contributions
As a wage earner, you may also contribute to an RRSP in the name of your spouse and deduct the amount from your own taxable income.
Your RRSP Plans Are Government-Insured
At IC Savings, you enjoy unlimited deposit insurance on qualified RRSPs. For further information on deposit insurance coverage, please ask for a brochure at the credit union, or call the Deposit Insurance Corporation of Ontario at 1 800 268-6653 or www.dico.com.
Four guaranteed ways to grow your RRSP
RRSP Term Investments
No matter where you are in life or what your investment goals are, it always helps to have guaranteed investments in your RRSP. Secure, insured products act as the backbone for many investment plans. IC Savings offers one of the industry’s best RRSP term deposit investments. Choose from one-year to five-year terms at highly competitive rates, with interest compounded annually.
Variable Rate Savings RRSPs
Grow your investments more quickly. Interest is calculated on the minimum daily balance. The high-rate Investment Savings Account is ideal for simplifying your life, allowing you to make automatic weekly, bi-weekly or monthly investments.
Index-Linked Term Deposits
Often called Index-Linked GICs, these products offer a guarantee of your principal, with a rate of return tied to growth in the stock market. Returns are based on the performance of the S & P and TSX 60 index. You can take advantage of gains in the market indeces but be fully protected if market values drop. Your gains can be as high as 30% on some funds but the downside never falls below "0%." Plus, your principal has the benefit of unlimited insurance on registered deposits.
Mutual Funds
Consider equity, bond or money market mutual funds as part of a balanced approach to your RRSP investments. Whether you’re looking to make new investments in mutual funds for your IC Savings RRSP, or transferring in RRSP money you hold at another institution, you have access to more than 1,900 mutual funds through Credential Asset Management Inc., including the family of Ethical Funds®. These socially responsible funds enable you to invest in portfolios of stocks of companies which meet strict ethical standards.
Don’t have enough cash on hand to use up your RRSP contribution room?
RRSP Loans at Prime
Arrange an RRSP loan to invest in your future and save money today. Take advantage of your unused contribution room, earn an attractive tax refund (which can repay a substantial portion of the loan in just months), and watch your retirement savings grow bigger and faster than you ever thought possible, with an RRSP loan as low as prime.
Here’s a simple illustration of the benefit of borrowing to top up your RRSP contribution.
· Marginal tax rate: 40%
· RRSP loan amount: $3,000
· RRSP loan interest rate over the term: 4.5%
· Loan term: 12 months
· Monthly loan payments: $256.14
· Tax benefit: $1,200.00
· Total loan interest over the term: $73.63
· Net benefit: $1,126.37
For those who qualify, an IC Savings RRSP "Top Up” Loan makes it easy to take advantage of your unused RRSP contribution room, with convenient repayment terms up to 10 years. Talk to us about the world of options available through IC Savings to build your RRSP. Our staff can help you decide on the right mix of investments to suit your goals.
Grow your retirement savings faster with monthly contributions
Simplify your investing today. You can avoid the pain of finding a lump sum to invest every spring by making regular contributions every month. Plus, you get the benefits of a whole year of investing. The best way to accelerate your RRSP is to contribute automatically – weekly, bi-weekly or monthly – from your savings or chequing account. You’ll hardly notice the difference in your account balance and by year end you’ll have made a substantial RRSP contribution painlessly. Plus, you’ll be compounding your earnings monthly instead of just focusing on the tax advantages of a one-time contribution at the end of the year.