Personal Tax Strategy

What do 20.3 million Canadians have in common?

They have unused contribution room in their RRSPs totaling almost $539 billion.

The fact that so many Canadians are not fully invested in their RRSPs is surprising, when you consider that they’re one of the few tax shelters available to Canadians, allowing you to save almost $270 to $450 in taxes for every $1,000 you contribute to your RRSP. For the 2009 tax year, you can contribute up to $21,000, which can add up to a substantial amount of money over time. For more information, please go to RRSPs.

Six key reasons to invest in RRSPs

Any money you put into your RRSP stays sheltered from taxes until you remove it.
Money that is sheltered from taxes grows faster. For example, if your RRSP investment grows at six per cent, your money would double in 12 years. But if you held the same investments outside an RRSP, and lost one-third of the return to taxes annually, your money would double every 18 years.
Remember, you can invest the tax return you receive from the government and that will add to the growth in your RRSP.
When you finally take money out of your RRSP, you will likely be in a lower tax bracket.
Because Canadians are living longer than ever, you’ll need to save enough money to last for at least 30 years, and RRSPs are one of the best ways to finance retirement.
If you need money to finance your education or to purchase a home, it can be withdrawn and paid back in annual installments.

Mutual funds sponsored by Mackenzie Financial Corporation are only qualified for sale in the provinces and territories of Canada.

Commissions, trailing commissions, management fees and expenses may all be associated with mutual fund investments. Please read the prospectus carefully before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.