5 Simple Strategies for your RRSP solutions One: RRSPs the power of tax sheltered growth While a tax deduction provides an immediate benefit to RRSP investors, the real power of RRSP investing comes from tax deferred, compound growth. When investing outside an RRSP, Revenue Canada takes a piece of your earnings each year, probably a significant piece. Now, just imagine if you could put all of those lost earnings to work for you. Think of how much more quickly your investments would grow when you invest in RRSPs. For example, assuming your personal tax rate is 40%, if you were to invest $3,000 per year into a non-registered account earning 10% annually for 25 years, you would accumulate $174,469. Sounds impressive, doesn't it? However, if you were to put the same $3,000 per year into an RRSP, also earning 10% for 25 years, you would accumulate $324,545. In other words, your RRSP would be worth almost twice as much. Niagara Credit Union will help you choose which RRSP plan is best for you, in an easy to understand way. It's as simple as that. Two: Build a Solid Foundation There has been growing interest in the equity markets and higher risk investment options in recent years, but it's a good idea to make sure your retirement savings plan is built on the secure foundation of guaranteed Term Deposit returns. All of Niagara Credit Union's RRSP Term Deposits and Savings Accounts are fully insured up to $100,000 per plan by the Deposit Insurance Corporation of Ontario (DICO). That's better coverage than the banks. Let a Niagara Credit Union Financial Services Advisor help you build a solid foundation for your RRSP. Three: Add some Growth Potential to your Plans If time is one side of the investment equation, rate of return is the other. Together, these two elements will largely determine whether or not you reach your long term investment goals. Over the long term, stock markets have always outperformed fixed term deposits. To participate in this growth potential, invest a portion of your RRSP in RRSP Eligible Equity Mutual Funds. Niagara Credit Union offers a great selection of top performing Mutual Funds from Canada's top Fund Companies. Unlike most banks, you're not restricted to only one "family" of funds. Your personal Niagara Credit Union Financial Services Advisor will help you determine your Financial Goals, and how much of your retirement plan should be invested in Mutual Funds. Four: Borrow Money to Save Money The annual limit for individual RRSP contributions is 18% of earned income, up to a maximum of $13,500. Making a contribution of any size is a step in the right direction, but by contributing up to your limit, you maximize the potential of your RRSP. If you don't have the resources right now to make or maximize your RRSP deposit, or to catch up on unused contribution room, borrowing may be a good idea. The tax deduction you will receive this year, as well as the tax sheltered growth potential of RRSP investments, can more than offset the interest cost of the loan. If substantial RRSP contribution room has added up over the years, consider using the equity you've built up in your home to enable you to maximize a substantial "top up" contribution. Your Niagara Credit Union Financial Services Advisor can help you determine if it makes sense to use a Niagara Credit Union Loan at Prime to make your contributions.   (conditions apply - please see your branch for further details) Five: Save a Little Now - It goes a long way later It's never too early to start investing in your future with an RRSP. How soon you start investing can be more important than how much you invest. Over the years, even modest regular contributions can build into a significant nest egg. The earlier you begin, the bigger it can grow, so start putting in as much as you can afford as soon as you can. Can' t seem to ever dig up enough money to make your annual RRSP contribution? Make it easy to reduce taxes and save for the future by starting a regular RRSP investment plan - a pre-authorized plan where you invest a set amount every month. Or invest monthly in top performing RRSP eligible Mutual Funds - and you'll benefit from dollar cost averaging. And it takes less to get started than you may think. A personal Niagara Credit Union Financial Services Advisor can help you determine how you can be putting away today, to plan for tomorrow.