
Five Financial Products You Should Own
By Brenda Spiering, Marketing & Communications Manager, Client Solutions, for Sun Life Financial.
1. Registered Retirement Savings Plan (RRSP)
As soon as you begin your working life, you should have a Registered Retirement Savings Plan (RRSP). It’s one of the most tax-effective ways to save for retirement.
You’re allowed to contribute up to 18% of your earned income from the previous year to a maximum of $24,930 for 2015 and $25,370 for 2016. (If you’re a member of a group pension plan, your contribution room is reduced by your “pension adjustment,” an amount you’ll find listed on your T4.)
Contributions are tax deductible, meaning you can net a tidy tax refund while building your savings. Plus, you can turbo-charge your RRSP savings by putting that tax refund back into your RRSP as soon as you receive your cheque. Read more