In many instances, RRSP’s are a good way to reduce your taxes paid each year. However, this isn’t always advisable and you should seek the advice of a financial advisor to ensure this will be beneficial to you when you retire.
Important: When purchasing RRSP’s, ensure you take into consideration any undeducted RRSP amounts from prior years to avoid significant penalties for over contributing. If you are maximizing the amount you contribute each year, the best way to determine how much room you have for contribution is to either go into your CRA myaccount or call CRA directly at 1-800-959-8281. We can give you an approximate but the exact figure should be obtained from CRA.