RRSP Explained Part 1/2 | RRSP Basics | Contribute RRSP Lower Income Tax | Higher RRSP Tax Refund 🏦
All the basics you need to know about the Canadian RRSP!!!
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MOST POPULAR VIDEOS:
🚨 TFSA Explained - https://youtu.be/K6T86tKc4JM
RECOMMENDED WATCHING
🚨 RRSP Basics | Contribute RRSP Lower Income Tax | Higher RRSP Tax Refund - https://youtu.be/53zAiYNYkGY
CHAPTERS
00:00 Welcome
0:42 What is an RRSP?
1:33 Tax Sheltered
3:39 What's in an RRSP?
4:34 The Power of Compounding
5:16 Tax Refund
10:41 Contributing and Withdrawing
12:24 Contribution Limit
12:59 Who, When, Why, Where can open up an RRSP?
16:24 Closing Remarks
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I’m Leah Elizabeth from Canada! I can help you grow your active income & passive income so that you can achieve financial freedom!
- Investing
- Personal Finance
- Stock Market
- Dividends
- Loans
- Entrepreneurship
📈 Let's take this journey together and watch our portfolio's grow! 📈
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📷Instagram: https://www.instagram.com/Leah.Elizzabeth
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🎁 DONATION ADDRESS 🎁
Paypal: leah.elizzzabeth@gmail.com
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WHAT?
RRSP is a Registered Retirement Savings Plan
The RRSP isn't really a savings plan, more like an investment account. Just like the TFSA, anything you earn in the RRSP is tax free, so no capital gains tax. No dividend income tax. No interest income tax. Since the money is tax sheltered inside of an RRSP you don’t have to pay any of these taxes.
When you invest in an RRSP there’s the magic of compounding. Year after year your money is making money off of itself again and again and again, exponentially.
RRSP Basics: whatever money you put into the RRSP is deducted from your taxable income and you’ll typically get a tax refund. Taxes are deferred until later, typically when you retire.
What is a tax refund and how do I get it?
When your job charges taxes on your paycheck on your behalf and they charged too much tax then when you submit your taxes at the end of the year and CRA see’s you’ve paid too much/over the amount you needed to pay in taxes, they’ll send you a tax refund.
You may have noticed that some years CRA sends you a check in the mail or wires you money straight into your account. This is because you paid too much in taxes for that tax year and they’re “refunding you”.
How to Decrease RRSP Income Tax
Current RRSP Contributions turn into RRSP Withdrawals in retirement. Contributing to your RRSP lowers your Income Tax which increases your RRSP Tax Refund
Opposite of a tax refund is say your work taxes off the right amount on your paycheck for taxes but you also have rental income and side hustle income that no one charged you tax for upfront, you would be owing taxes on that rental income and side hustle money at the end of the year, at a higher tax bracket most likely too, thus owing taxes to the CRA.
There’s also a limit to how much you can contribute into your RRSP so login to your CRA My Account and check what your contribution room is
Who is eligible for setting up an RRSP?
Canadian resident
Earned income in previous year - so after you worked in one year, the next calendar year you can open a RRSP
No minimum age but there is a maximum, max age 70 to open and contribute to RRSP
This account is the most beneficial for people in the higher earnings, so if you're at a hot point in your career making a lot of money then use RRSP to pay less in income tax.
WHEN?
As soon as January hits and you’ve earned income in the previous year you can open up an RRSP account. Once it’s open you can contribute any time.
WHY?
It reduces your taxable income so you get a tax refund.
WHERE?
Any financial institution, or online broker like Wealth Simple.
Just like TFSA you can open up a bunch of RRSP’s but combined can’t go over your limit.
DISCLOSURE:
Some of the links on this page are affiliate links, meaning, at no additional cost to you, I may earn a commission if you click through and make a purchase and/or subscribe. Affiliate commissions help fund videos like this one. I am not a financial advisor. The ideas presented in this video are for entertainment purposes only. You (and only you) are responsible for the financial decisions that you make.
#FinanceRules #Invest #RRSP
Видео RRSP Explained Part 1/2 | RRSP Basics | Contribute RRSP Lower Income Tax | Higher RRSP Tax Refund 🏦 канала Finance Rules
💰 Get $50 by funding your 1st Wealthsimple Invest (robo ETF's) account (deposit min. $500) - https://wealthsimple.sjv.io/Qoyjx
💰 Get $10 by funding your 1st Wealthsimple Trade & Crypto (stocks & bitcoin) account (deposit min. $100) - https://wealthsimple.sjv.io/ORR3Xz
💰 Get Cryptocurrency here: coinsquare.com/register?r=1BsCA
💰 Get cash back to shop + $5 welcome bonus: https://www.rakuten.ca/r/leahelizabeth
💰 Book an AirBnB and get $70 off your 1st trip https://www.airbnb.ca/c/leahn86?referral_share_id=8d04138f-6540-4a76-9397-560b7d916d64
MOST POPULAR VIDEOS:
🚨 TFSA Explained - https://youtu.be/K6T86tKc4JM
RECOMMENDED WATCHING
🚨 RRSP Basics | Contribute RRSP Lower Income Tax | Higher RRSP Tax Refund - https://youtu.be/53zAiYNYkGY
CHAPTERS
00:00 Welcome
0:42 What is an RRSP?
1:33 Tax Sheltered
3:39 What's in an RRSP?
4:34 The Power of Compounding
5:16 Tax Refund
10:41 Contributing and Withdrawing
12:24 Contribution Limit
12:59 Who, When, Why, Where can open up an RRSP?
16:24 Closing Remarks
🔴 SUBSCRIBE 🔴
I’m Leah Elizabeth from Canada! I can help you grow your active income & passive income so that you can achieve financial freedom!
- Investing
- Personal Finance
- Stock Market
- Dividends
- Loans
- Entrepreneurship
📈 Let's take this journey together and watch our portfolio's grow! 📈
🔍SOCIAL MEDIA
📷Instagram: https://www.instagram.com/Leah.Elizzabeth
🐤Twitter: https://twitter.com/Leah_Elizzabeth
👾Twitch: https://www.twitch.tv/LeahElizzabeth
👩🏻Facebook: https://www.facebook.com/Leah.Elizzabeth
🎁 DONATION ADDRESS 🎁
Paypal: leah.elizzzabeth@gmail.com
Bitcoin: 32oove8jLFAzrVQjHaXpqRk6Fpqxkn4SoX
WHAT?
RRSP is a Registered Retirement Savings Plan
The RRSP isn't really a savings plan, more like an investment account. Just like the TFSA, anything you earn in the RRSP is tax free, so no capital gains tax. No dividend income tax. No interest income tax. Since the money is tax sheltered inside of an RRSP you don’t have to pay any of these taxes.
When you invest in an RRSP there’s the magic of compounding. Year after year your money is making money off of itself again and again and again, exponentially.
RRSP Basics: whatever money you put into the RRSP is deducted from your taxable income and you’ll typically get a tax refund. Taxes are deferred until later, typically when you retire.
What is a tax refund and how do I get it?
When your job charges taxes on your paycheck on your behalf and they charged too much tax then when you submit your taxes at the end of the year and CRA see’s you’ve paid too much/over the amount you needed to pay in taxes, they’ll send you a tax refund.
You may have noticed that some years CRA sends you a check in the mail or wires you money straight into your account. This is because you paid too much in taxes for that tax year and they’re “refunding you”.
How to Decrease RRSP Income Tax
Current RRSP Contributions turn into RRSP Withdrawals in retirement. Contributing to your RRSP lowers your Income Tax which increases your RRSP Tax Refund
Opposite of a tax refund is say your work taxes off the right amount on your paycheck for taxes but you also have rental income and side hustle income that no one charged you tax for upfront, you would be owing taxes on that rental income and side hustle money at the end of the year, at a higher tax bracket most likely too, thus owing taxes to the CRA.
There’s also a limit to how much you can contribute into your RRSP so login to your CRA My Account and check what your contribution room is
Who is eligible for setting up an RRSP?
Canadian resident
Earned income in previous year - so after you worked in one year, the next calendar year you can open a RRSP
No minimum age but there is a maximum, max age 70 to open and contribute to RRSP
This account is the most beneficial for people in the higher earnings, so if you're at a hot point in your career making a lot of money then use RRSP to pay less in income tax.
WHEN?
As soon as January hits and you’ve earned income in the previous year you can open up an RRSP account. Once it’s open you can contribute any time.
WHY?
It reduces your taxable income so you get a tax refund.
WHERE?
Any financial institution, or online broker like Wealth Simple.
Just like TFSA you can open up a bunch of RRSP’s but combined can’t go over your limit.
DISCLOSURE:
Some of the links on this page are affiliate links, meaning, at no additional cost to you, I may earn a commission if you click through and make a purchase and/or subscribe. Affiliate commissions help fund videos like this one. I am not a financial advisor. The ideas presented in this video are for entertainment purposes only. You (and only you) are responsible for the financial decisions that you make.
#FinanceRules #Invest #RRSP
Видео RRSP Explained Part 1/2 | RRSP Basics | Contribute RRSP Lower Income Tax | Higher RRSP Tax Refund 🏦 канала Finance Rules
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