RHYS MARTELL  |  financial advisor

Do RRSPs Make Sense?

One of the common arguments I hear against RRSPs is that they don’t make sense because even though you get a tax deduction now for the money you put in, you just have to pay tax on it later, when you pull the money out. So what’s the point?

Well, for some people, there is no point. But for most people, there’s a huge point. But it all comes down to tax rates.

Most people have a high tax rate while they’re working because they’re income is high. But when they’re retired, most people’s incomes are a lot lower. So they pull out money at a much lower tax rate. And therefore, they get to keep the difference.

And that’s just one of the benefits.

But the key point here is that you have to know your numbers before you’ll know if it makes sense for you.


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This article is for educational purposes only and is not intended to provide specific personalized advice including, without limitation, investment, financial, legal, accounting or tax advice. Opinions expressed are those of the owners and writers only. Every effort has been made to compile this material from reliable sources, however, no warranty can be made as to its accuracy or completeness. It may also include forward looking statements concerning anticipated results, circumstances, and expectations regarding future events. Forward-looking statements require assumptions to be made and are, therefore, subject to inherent risks and uncertainties. There is significant risk that predictions and other forward looking statements will not prove to be accurate. Please consult an appropriate professional regarding your particular circumstances. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus or the fund facts before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Mutual Funds and Segregated Funds provided by the Fund Companies are offered through Worldsource Financial Management Inc., sponsoring mutual fund dealer. Other Products and Services are offered through Rhys Martell/Well-Built Plans Financial.

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