Financial Tools to Use for the Coming RRSP Contribution Season
You want to make more informed decisions this RRSP season. What if you could run some of the numbers with a financial calculator and inform yourself with a few clicks? CI Direct Investing has created some handy tools for you to use to maximize your return and plan for the future.
We make it easy to get the numbers you need to take action. Hope you find them useful (and tell your friends)!
There’s some time left to top up your investments for the 2020 tax year, with the RRSP deadline hitting on March 1, 2021. Are you putting in enough? Too much? Are you optimizing your rate of return? Maybe you haven’t quite got a handle on how much to contribute to your RRSPs. We’ve got your back!
RRSP vs TFSA Financial Calculator. Which one should you use?
While many have RRSPs on the brain, Tax Free Savings Accounts have become more popular since they were introduced for Canadians just a few years back.
Our easy-to-use RRSP vs TFSA Calculator can help you figure out which option makes the most sense for you. (In many cases, the answer is both).
Plug in your current annual income, deposit amount, yearly return on investment and other variables and then see the after-tax value from three different kinds of lump sum investments.
While a good general rule for a younger investor is to save as much as you can, when you’ve started earning a bit more, it might not make sense at that stage to maximize your RRSPs when a TFSA is available. You might just be increasing the amount of tax you’re going to pay when you take out funds, which partly defeats the purpose of contributing to an RRSP. Find out more about whether a TFSA or RRSP is best for you.
What if you just want to drill down a bit and find out how much tax you could be paying before you start looking at how an RRSP could lower your rate of tax? Look no further than…
Tax Calculator. Find out how much you will (and won’t) pay
Our Canadian Tax Calculator shows you how much you’ll be paying both in federal and provincial taxes. Select your province, plug in your annual income (before taxes) and your yearly tax deductions like your RRSP contributions and voila! You can instantly see how much tax you could be paying.
We’re not a tax-filing company, so why did we create this tool? Part of our mission is making it easier than ever for Canadians to handle their investments. (A financial calculator is just a tiny part of that).
Remember, RRSPs aren’t just an investment channel but a way of deferring and lowering the tax you’ll be paying on that investment (Though you will start paying taxes on RRSP funds withdrawn in your retirement; assuming your average tax rate at that time is lower than your marginal tax rate, you’ll come out a winner).
After you’ve crunched the numbers, get the most out of your money
You’ve used our financial tools to help figure out where you stand with your money and investments… but now, what do you do?
CI Direct Investing makes great online investing, ridiculously easy. Plus, CI Direct Investing clients get unlimited access to professional financial advice.
To get started, sign up for a CI Direct Investing account today.