|
To truly determine if an RRSP is worth your while, you really need to do some tax planning.
The purpose of an RRSP is to defer taxes that would have been payable now to future years when you're in retirement and drawing from your retirement fund. In order to truly benefit from an RRSP, your taxable income today must be higher than what you anticipate to be your taxable income when you retire. If it isn't that you may ultimately pay more taxes over your lifetime had you not contributed to your RRSP.
On a related note, an RRSP is yet just another savings vehicle. It should only be a part of your overall portfolio of savings vehicles... not the only savings vehicle.
|