RRSP Centre

• Self-Directed RRSP
• Deduction Limit
• Spousal RRSP
• Investment Options
• Investment Strategies
• RRSP Loans
• How Much Will I Need to Save?
• RRSP Maturity Options
• Annuities
• RRIFs
• Self-Directed RRIF
• How Much Income Will I Need?
• How Long Will My RRIF Last?
• Naming a Beneficiary
• Retirement Planning for Small Business Owners

RRSP Centre

A Contribution To The Life You Want
The whole notion of retirement is changing. So is retirement planning. There is some debate as to how much you’ll need to retire comfortably. A standard rule-of-thumb suggests you’ll need 70 percent of your pre-retirement income to maintain a comparable standard of living. But there is no “standard” retirement these days. Your plans and dreams will differ from others. However, it is increasingly apparent that the vast majority of this income will need to come from personal savings such as RRSPs. Almost everyone has heard of an RRSP and many people own them. But an RRSP is only as good as the planning that goes into it.

RRSPs provide you with an exceptional opportunity to save for retirement. Not only are your RRSP contributions tax deductible, but all of the income earned on those contributions compounds on a tax-deferred basis. Try our RRSP vs. non-RRSP calculator to see how tax-deferred compounding can impact your retirement savings.

The 2007 RRSP contribution deadline is February 29, 2008 and the maximum RRSP contribution limit is $19,000.

Here are some ways you can get an early start on your 2007 RRSP contribution:

• Establish a pre-authorized automatic contribution plan
• Use your 2006 income tax refund to make an RRSP contribution and reduce taxes for 2007
• If you borrowed funds to make your contribution, once the loan is paid off, continue making the payments and direct them to your RRSP

A BMO Nesbitt Burns Self-Directed RRSP is a great way to maximize the earning power of your contributions. By giving you the option of choosing from a wide variety of qualified investments you have more opportunities to enhance your investment returns. Plus, a Self-Directed RRSP gives you the flexibility to alter your investments as market conditions or personal circumstances change. As an added benefit, by combining all of your RRSPs into a BMO Nesbitt Burns Self-Directed plan, your financial planning can become much simpler.

Self-directed doesn't mean do-it-yourself. It's important to remember that although the ultimate investment decision is yours, your Investment Advisor can supply you with the professional expertise that can help you to profit from an ever-changing environment.

For more information, contact an Investment Advisor at a BMO Nesbitt Burns branch near you.

If you would like a BMO Nesbitt Burns Investment Advisor to contact you, simply complete this brief contact form.

Note: The comments included are not intended to be legal advice or a definitive analysis of tax applicability or trusts and estates law. Such comments are general in nature and professional advice regarding an individual's particular position should be obtained.

Using borrowed money to finance the purchase of securities involves greater risk than a purchase using cash resources only. If you borrow money to purchase securities, your responsibility to repay the loan and pay interest as required by its terms remains the same even if the value of the securities purchased declines.