RSPs
Five Key Steps to RSP Planning
Financial planning for retirement can seem like an onerous task - but it doesn't have to be. There are many simple steps you can take to maximize your investments and increase your retirement savings. If you're looking for sound RSP advice, look no further.
Simply follow the five key steps for every RSP investor:
1. Get the advice and services that are right for you
With the ever-increasing number of investment options, RSP investing is growing more complex. Today, getting the right investment advice and services is crucial if you want to be confident about the RSP decisions you make. That's why we offer access to a complete range of retirement investments, advice and services for every type of investor.
We can work with you to provide sound advice on building your RSP. We can design and manage your RSP portfolio for you. Or we can give you access to the tools and research that will help you make informed and timely investment decisions for yourself.
- Visit any TD Canada Trust Branch
- Call us any time, 24 hours a day, seven days a week at 1-866-222-3456
- Or learn more about the professional investment advice, financial planning and self-directed investor services offered at TD Waterhouse
Whichever approach you choose, you can be sure that you'll be dealing with trained, dedicated professionals supported by all the resources of Canada's premier retail bank.
2. Make sure your plan is on track
Before you think about how much to contribute or what kind of investments you're going to make, you should know if your RSP is on track to meet your retirement needs.
Our RSP Contribution Calculator and Your Retirement Strategy tools can help.
Or visit any TD Canada Trust branch and we'll be pleased to help you determine -
- Where you stand today
- How to increase your retirement savings
- How much you should contribute to reach your retirement goals
- What to expect from your RSP when you retire
- What types of investments you might want to consider
3. Make the maximum contribution each year
Making the maximum RSP contribution as early as you can each year is such a good way to build your RSP that it can make sense to borrow the money to contribute if you need to.
The benefits of a tax deduction this year and long-term tax-deferred compound growth within your RSP can far outweigh the cost of an RSP Loan or using your Line of Credit.
4. Pay yourself first by contributing year-round
Making regular RSP contributions throughout the year instead of trying to come up with the entire amount just before the deadline is an easy way to build your RSP and avoid having to come up with a large amount of money at one time.
Plus, the contributions you make throughout the year have extra time to grow on a tax-deferred basis and can result in more for you at retirement.
Find out how to start contributing on a regular basis:
5. Think ahead to your Retirement Income Fund
By law, your RSPs must be converted to a form of retirement income by the end of the calendar year in which you turn 71. The most popular choice for Canadians is to convert their RSPs to a Retirement Income Fund (RIF).
With a RIF, your investments can continue to grow on a tax-deferred basis while you withdraw the income you need.
|
