Financial Planning: Three Simple Rules for RRSPs

Hi, my name is Taivi Tayler and I am a practicing Certified Financial Planner and wealth manager and I work with people all over the Province of Ontario. 

Here are my 3 Simple Rules for RRSPs

Rule 1 – contribute, don’t over contribute – you don’t need to max out your RRSP. Don’t stress yourself out. Do what you can when you can. Perhaps saving monthly will work better for your budget.

Rule 2 – the highest income earner makes the contribution. In my practice when I have a new client to work with, I find that I am constantly balancing out people’s RRSPs.  This is usually because their former advisor didn’t set it up right. Just because the highest income earner makes the contribution, it doesn’t mean they should own the account. 

Rule 3 – if you have a solid pension plan that you’re contributing to, please don’t make an RRSP contribution, unless it’s spousal. Decades down the road, you’ll be setting yourself up for an overtaxed retirement. We want to avoid that.

Contact us to find out how we can keep your wealth management strategy tax efficient. Plan, protect, and grow your wealth with Tayler Insurance & Estate Planning.