Page 11 - Best Magazine Winter 2017
P. 11
LIFE LONG LEARNING:
1. You and your spouse can use up to $ 20,000 each from your RRSP to fund your education.
2. The money should be deposited back in your RRSP over 10 years.
INVESTMENT ORDER:
We all would like to have enough money to maximize the RRSP’s and TFSA’s, but the reality is different. Most people have to choose between one or the other. This would be my recommendation:
1. Maximize the RRSP first to save money in taxes.
2. Maximize the TFSA next to complement your retirement income.
3. Continue with OPEN INVESTMENTS, Tax shelter vehicles like life Insurance Par Policies, Universal Life.
EXAMPLE OF THE POWER OF INVESTING IN RRSP:
RETIREMENT INCOME:
SALARY
ESTIMATED MARGINAL TAX BRACKET
TAXES PAID
RRSP INVESTMENT 18% OF SALARY
TAX REFUND
RRSP AT AGE 65 @ 6% RETURN ON INVESTMENT
TAX SAVINGS AT AGE 65 @ 6% RETURN OF INVESTMEN
TOTAL MONEY FOR RETIREMENT
$80,000
34%
$27,200
$14,400
$4,464
$529,713
$164,211
$693,923
TOTAL MONEY FOR RETIREMENT
ANNUAL INCOME @ 5%
ESTIMATED TAX BRACKET
with no split Income
TAXES
with no split Income
ESTIMATED TAX BRACKET with split Income
TAXES
with split Income
$693,923z
$49,236
22%
$10,832
11%
$5,416
THE BEST MAGAZINE WINTER 2017 - 2018 11
