Planning & Advice

Financial calculator tools to use for the coming RRSP contribution season

October 25, 2018

Financial calculator tools to use for the coming RRSP contribution season

Planning & Advice

You want to make more informed decisions this RRSP season. What if you could run some of the numbers with a financial calculator and inform yourself with a few clicks? WealthBar has created some handy tools for you to use to maximize your return and plan for the future.

We make it easy to get the numbers you need to take action. Hope you find them useful (and tell your friends)!

There’s some time left to top up your investments for the 2018 tax year, with the RRSP deadline hitting on March 1, 2019. Are you putting in enough? Too much? Are you optimizing your rate of return? Maybe you haven’t quite got a handle on how much to contribute to your RRSPs. We’ve got your back!

Invest online with a dedicated financial advisor.

The RRSP vs TFSA Financial Calculator. Which one should you use?

While many have RRSPs on the brain, Tax Free Savings Accounts have become more popular since they were introduced for Canadians just a few years back.

Our easy-to-use RRSP vs TFSA Calculator can help you figure out which option makes the most sense for you (In many cases, the answer is both).

Plug in your current annual income, deposit amount, yearly return on investment and other variables and then see the after-tax value from three different kinds of lump sum investments.

While a good general rule for a younger investor is to save as much as you can, when you’ve started earning a bit more, it might not make sense at that stage to maximize your RRSPs when a TFSA is available. You might just be increasing the amount of tax you’re going to pay when you take out funds, which partly defeats the purpose of contributing to an RRSP.

What if you just want to drill down a bit and find out how much tax you could be paying before you start looking at how an RRSP could lower your rate of tax? Look no further than…

WealthBar’s Canadian Tax Calculator. How much will you pay in 2018?

Our Canadian Tax Calculator shows you how much you’ll be paying both in federal and provincial taxes. Select your province, plug in your annual income (before taxes) and your yearly tax deductions and voila! You can instantly see how much tax you could be paying.

We’re not a tax-filing company, so why did we create this tool? Part of our mission is making it easier than ever for Canadians to handle their investments (A financial calculator is just a tiny part of that).

Remember, RRSPs aren’t just an investment channel but a way of deferring and lowering the tax you’ll be paying on that investment (Though you will start paying taxes on RRSP funds withdrawn in your retirement; assuming your average tax rate at that time is lower than your marginal tax rate, you’ll come out a winner).

Lower fees? (Yes please!) Breaking the bad habit of throwing good money after bad

Our tools may be easy to use, but what are you going to do with your findings? If your next step was to log into the portfolio management site for a bank, take a minute. Heck, take two — and read on.

If you’re not using WealthBar, maybe you were planning on just throwing a lump sum at an account set up with a traditional bank. In that case, there’s a good chance you’re not optimizing your investment management fees.

Making a good rate of return is important, but you probably don’t need to be spending the equivalent of 3 cups of coffee a day in mutual fees. (Just imagine if you routinely lost that amount of money every day through a hole in your pocket. You’d probably be pretty annoyed with yourself after just a few days. You might even invest in a new pair of pants. Yet, far too many folks are content to carry on with a bank’s RRSP management, higher fees or not. Human nature is funny that way).

With an investment of $25,000 with WealthBar, for instance, you could be paying just $13 (monthly), or a whopping $45.83 with a bank’s mutual fund.
Run the numbers and see for yourself.

Ready to make a switch after checking out our financial calculator? Sign up for a WealthBar account and schedule a live chat with one of our friendly and knowledgeable financial advisors today.

Extra Credit. Get the Most Out of Your Money

Check out our CEO Tea Nicola talking about how to build a long-term financial plan. We get into the differences between RRSPs and TFSAs at about the 15-minute mark.

A few minutes today could save you thousands tomorrow.
Start investing in under 5 minutes. No hold music. No paperwork.
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