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23.2 - RRSPBASICS FORPEOPLEUNDER30 BASICOVERVIEW...

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    RRSP BASICS FOR PEOPLE UNDER 30
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    BASIC OVERVIEW CONTRIBUTIONS - TAX DEDUCTIBLE SAVE TAXES NOTE PROGRESSIVE INCOME TAX RATES THE MORE YOU EARN… THE HIGHER THE TAX RATE INVEST CONTRIBUTIONS TAKE OUT – PAY TAXES
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    RRSP Tax Deferred On: - Capital Invested - Income Earned Cash Out Tax Paid Tax Paid TAXATION Earned Income
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    2005 EFFECTIVE TAX RATES ONTARIO * Includes Basic Personal Amount
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    WHY RRSPs BEAT  SAVING OUTSIDE A  REGISTERED PLAN
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    RRSP VS NON-RRSP SAVINGS $0 $100,000 $200,000 $300,000 $400,000 1 3 5 7 9 11 13 15 17 19 21 23 25 RRSP - $394,770 Non-RRSP - $122,488
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    THE RRSP ADVANTAGE The RRSP Advantage: $90,688 or 74% Saved Saved Inside RRSP Outside RRSP After 25 Years $394,770 $122,488 Less : Tax @ 46% 181,594 0 $213,176 $122,488
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    WHY YOU SHOULD  START RRSPs EARLY
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    START YOUR RRSP EARLY $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 25 30 35 40 45 50 55 60
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    CALCULATING  RRSP  CONTRIBUTIONS
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    BASIC PRINCIPLE Deduction room is based on PREVIOUS YEAR’S EARNED INCOME
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    EARNED INCOME Salary/Wages Net Rental Income Taxable Alimony Royalties Net Research Grants
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