What is an RRSP?
A Registered Retirement Savings Plan (RRSP) is designed to provide Canadian residents with the ability to save money for retirement and to shelter the income earned on their investments, until the point in time when funds are cashed out, withdrawals are made, or payments are received from an RRSP.
There are certain instances where you can withdraw funds from your RRSP without tax consequences insofar as the funds are repaid over a specified period of time. These programs include the Home Buyers Plan (“HBP”), which allows for the purchase of your first home; and the Lifelong Learning Plan (“LLP”), which allows for continuing education or retraining.
You can setup an RRSP in your own name, or in the name of your spouse or common-law partner. Establishing a spousal RRSP is often a good strategy when the higher income earning spouse contributes into a spousal RRSP account for the lower income earning spouse. The contributing spouse receives a short-term benefit of a tax deduction for the RRSP contribution; while the annuitant spouse which is typically the lower income earner, will claim the income upon withdrawal on his/her tax return, therefore at lower tax rates.
At the age of 71, you can no longer contribute to RRSPs, your RRSP account must be converted to a RRIF (Registered Retirement Income Fund) and mandatory minimum withdrawals must be made.
Your contribution limit (at a minimum) is the government prescribed maximum RRSP contribution limit each year. However, if you did not use all of your contribution limit for the years 1991 – 2009, you can carry forward unused contribution limits making your RRSP deduction limit much higher than the prescribed limit.
For example, the 2009 contribution limit for RRSPs is $21,000 PLUS any unused contribution room from past years (see your 2008 Notice of Assessment for your 2009 Contribution Limit).
The 2010 contribution limit is $22,000.
The deadline for contributing to an RRSP for the 2009 tax year is March 1st, 2010. On completion of your tax return, you have the opportunity to deduct the first two (2) months contributions in 2010 against your income tax return for 2009.
RRSP’s can be administered in pre-packaged mutual fund portfolios with banks, investment brokers and financial planers, OR they can be self-directed in mutual funds, stocks, bonds and/or private equities.
Investing your RSPs in Skyline
Self-directed investing your RRSPs in Skyline Apartment REIT provides you with a very solid foundation for your retirement future, sheltered from the volatilities and uncertainties of the public markets where often the institutional investors and brokers control the fate of the individual (retail) investor’s portfolio. Skyline Apartment REIT as a private equity offering of stable apartment investments brings a blue-chip foundation to your portfolio with attractive returns and growth.
As a mutual fund trust, Skyline Apartment REIT is able to accept new RRSP contributions as well as existing RRSP transfers.
Why invest your RRSPs Skyline?
- Income-producing assets
- Proven, non-speculative investment class (apartments with a complement of commercial real estate)
- Direct contact with your investment (i.e. Skyline is your Investment Manager and the Property Manager)
- Geographic diversity
- Demographic diversity
- 9% annual distribution plus capital growth
If you would like to speak with Barb Chapman, please email her at bchapman@skylineonline.ca or call her directly at 1.800.800.RENT (7368).
