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February 2016 eUpdate |
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It's Contribution Time
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The more you contribute to your Registered Retirement Savings Plan (RRSP) (within allowable limits) and the earlier you do it, the greater the impact of tax-free compounding over time. Your 2015 contribution for earned income in that year should have already been made, but to take the biggest advantage of time, we suggest you make your 2016 contribution for earned income now.
Where feasible, if you have unused contribution room carried forward from previous years, make that contribution too. Being disciplined about this can make a significant difference to your post-retirement years. Our contribution checklist offers suggestions on making the most of your RRSP. Check it out.
It's also time to contribute to your Tax Free Savings Account (TFSA). Many investors down played this savings vehicle when it was introduced in 2009, thinking it was too small to worry about. With the total allowable contribution now at $46,500 per person, we believe every client should avail themselves of this tax-free growth opportunity.
We all pay plenty of tax in Canada. Isn't it better to take maximum advantage of the few tax-free savings opportunities we do have?
Talk to us and we'll recommend the most effective investment strategy for your specific situation. We look forward to serving you.
Very best regards,
CIBC Wood Gundy
Smith Falconer Financial Group
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This information, including any opinion, is based on various sources believed to be reliable, but its accuracy cannot be guaranteed and is subject to change. CIBC and CIBC World Markets Inc., their affiliates, directors, officers and employees may buy, sell, or hold a position in securities of a company mentioned herein, its affiliates or subsidiaries, and may also perform financial advisory services, investment banking or other services for, or have lending or other credit relationships with the same. CIBC World Markets Inc. and its representatives will receive sales commissions and/or a spread between bid and ask prices if you purchase, sell or hold the securities referred to above. © CIBC World Markets Inc. 2016
Clients are advised to seek advice regarding their particular circumstances from their personal tax and legal advisors.
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