Investing
Registered Retirement Savings Plan (RRSP)
At North Valley Credit Union (NVCU), we understand the importance of building a secure financial future. A Registered Retirement Savings Plan (RRSP) is a powerful investment tool designed to help Canadians save for retirement while benefiting from tax advantages. Whether you’re just starting your career or nearing retirement, an RRSP allows your savings to grow tax-free, ensuring that your future remains financially secure.
What is an RRSP?
A Registered Retirement Savings Plan (RRSP) is a government-approved savings plan that offers tax benefits to help you prepare for retirement. By contributing to an RRSP, you can reduce your taxable income, defer taxes on investment growth, and withdraw funds when you are in a lower tax bracket during retirement.
How RRSPs Help You Save on Taxes
Tax-Deductible Contributions
Contributions made to an RRSP reduce your taxable income, potentially lowering the amount of income tax you owe.
Tax-Free Growth
Any income earned within your RRSP (including interest, dividends, and capital gains) is not taxed until withdrawal, allowing your investments to grow faster.
Lower Tax Rates at Withdrawal
Many people withdraw funds in retirement when their income is lower, meaning they may pay less tax than they would have while working.
What Can You Hold in an RRSP?
An RRSP is a flexible investment account that allows you to hold a variety of financial products to maximize your returns.
Examples of Eligible RRSP Investments:
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Savings Accounts – Keep your funds accessible while earning interest.
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Term Deposits & GICs – Secure investments with guaranteed returns.
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Mutual Funds – Diversify your portfolio with professionally managed funds.
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Labour-Sponsored Funds – Specialized investment funds that may provide additional tax credits.
NVCU, in partnership with Investia Financial Services Inc., offers access to a range of investment options to help you build a strong retirement portfolio.
How to Contribute to Your RRSP
Each year, the Canadian government sets a contribution limit for RRSPs, which is based on 18% of your previous year’s income (up to a maximum limit set annually). Any unused contribution room can be carried forward to future years.
When Can You Withdraw from Your RRSP?
While RRSPs are primarily designed for retirement savings, there are specific ways to access funds early under government programs:
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Home Buyers’ Plan (HBP) – Withdraw up to $35,000 tax-free to purchase your first home (must be repaid over 15 years).
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Lifelong Learning Plan (LLP) – Withdraw up to $10,000 per year (maximum of $20,000 total) to pay for education or training (must be repaid over 10 years).
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Regular Withdrawals – You can withdraw from your RRSP at any time, but these withdrawals are taxable as income in the year they are taken.
Maximizing Your RRSP Contributions
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Make Regular Contributions – Set up automatic deposits to grow your savings consistently.
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Contribute Before the RRSP Deadline – Contributions made before the annual RRSP deadline can be deducted from your taxable income for the previous year.
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Use Unused Contribution Room – If you haven’t contributed the maximum in past years, you can carry forward unused contribution room.
Need help finding the right NVCU product for you?
Call us at (306)745-6615 or stop by the branch!
Get Started
How to Open an RRSP at NVCU
Getting started with an RRSP at North Valley Credit Union is simple. Our team will guide you through the process and help you select the best investment strategy for your future.
Steps to Open an RRSP:
1. Speak with One of Our RRSP Advisors – Discuss your retirement goals and contribution limits.
2. Select Your Investments – Choose from savings accounts, GICs, mutual funds, and more.
3. Make Your First Contribution – Start saving with lump-sum deposits or automatic contributions.
4. Watch Your Savings Grow – Enjoy tax-free investment growth while planning for your retirement.
Contact Our Investment Advisor
For personalized investment guidance, contact:
Wade Penman – Investment Advisor
📞 Phone: 306-745-4027
📧 Email: wade.penman@northvalleycu.com
Schedule a meeting today to discuss how RRSP’s can fit into your financial strategy.
Start Saving for Retirement Today
A Registered Retirement Savings Plan (RRSP) from North Valley Credit Union is an excellent way to secure your financial future, reduce your taxes, and grow your wealth. Whether you’re just starting out or nearing retirement, our team is here to help.
Get in touch today to open your RRSP and take control of your retirement savings!
