RRSPs
Starting and building an RRSP will likely be one of the most important steps you take in your financial life. There is no better way to reduce your taxable income and save for the future.
Investments in an RRSP have 2 big advantages over investments held outside an RRSP:
1. The contributions you make are tax-deferred.
(Most people consider it “saving” tax, but the money is actually taxed when you eventually withdraw it.)
If you contribute to an RRSP, you won’t pay tax on that money. For instance, say you make $65,000 per year. If you contribute $5,000 to an RRSP, you can deduct $5,000 from your taxable income for the year. You save the tax you would normally have had to pay on that $5,000.
2. The growth of your money is sheltered from tax while it grows.
Investments inside an RRSP grow without being taxed. That is true, whether the growth is from interest, dividends, or capital gains.
At Lake View Credit Union, every penny on deposit is 100% guaranteed, without limit, by the Deposit Insurance Corporation of British Columbia.
RRSP Loans
RRSP loans provide an opportunity for you to maximize your RRSP contribution and to take advantage of maximum tax benefits today while providing for your retirement.
Take advantage of unused carry forward amounts or maximize your yearly contributions by borrowing and taking up to 10 years to repay. A tax refund could be used to pay down loan balances, make next years’ contribution early, or just for you to spend - the choice is yours.
Benefits
- Terms from 12 months to 10 years
- Either fixed or floating rate loans
- Lower interest rates if you invest in Lake View Credit Union RRSP products
- Credit life insurance, disability, and critical illness insurance available
- Minimum payments apply
*Loan is due in full if transfer or redemption of RRSP is requested.
*Fixed deposits remain for the duration of the term following repayment of the loan.