RRSPs: What you should know!
A Registered Retirement Savings Plan (RRSP) provides annual tax benefits for saving for retirement. It is often suggested that couples set up an RRSP together: a spousal/common law RRSP, however, this type of investment assumes that partners will be together forever. The higher income earner (in this situation) benefits in the short term due to tax breaks. The lower income earner is supposed to benefit when they reach retirement. When setting up a plan such as this, make sure the plan actually benefits both parties in both the long and short term. If in fact this is uncertain (and most financial circumstances are difficult to determine), it may be best to set up a Tax Free Savings Account (TFSA) as a couple, this way both parties benefit equally.
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