#MoneyMythMondays — RRSP
This week’s Money Myth:
“You should always max out your RRSP.”
RRSP’s are tax-deferred and an important tool to save money, but leaving behind money in it can have severe tax burdens for your estate. It is also considered taxable income in retirement, so retirement benefits will be clawed back based on your income.
Here’s a WealthBar Pro Tip: Save only enough to cover basic living expenses in retirement and consider other vehicles, such as a TFSA, for the rest. Read more on when to invest in RRSP’s vs TFSA’s.
Have a suggestion or want to add to the discussion? Tweet us with the hashtag #MoneyMythMondays!