Financial Adjustments Continued from Page 15 There are many different savings options and strategies available today. Trying to do it yourself can be confus- ing and time consuming, and often produces limited results. Successful retirement planning is similar to chi- ropractic care. It involves a process of working with an expert who uses a holistic approach. To be most effec- tive, find an advisor that clearly under- stands your profession. This will allow the advisor to focus and properly as- sess and evaluate your current situa- tion, define where you need to be, and recommend appropriate strategies to help get you there. • For article with references, please see www.canadianchiropractor.ca. Trying to work out retirement strategies on your own can be confusing and time consuming, and often produces limited results. TaBlE 1: frEQUEnTly asKEd QUEsTions RESP Is there a contribution limit? Can I carry forward unused contribution room? Is there a monthly penalty on excess contributions? Are my contributions tax- deductible? Is my investment growth tax- deferred or tax-free? Are taxes payable on withdrawals? Are withdrawals added to my contribution room? Do withdrawals have an impact on income-tested benefits/ credits? What is the minimum age to contribute? What is the maximum age to contribute? If I borrow to invest in this account, can I deduct the interest? Can I use assets in this account as collateral for a loan? 40 • CANADIAN CHIROPRACTOR | FEBRUARY 2010 No annual limit but a $50,000 lifetime limit Yes Yes, calculated at month- end No Tax-deferred Withdrawals are fully taxable except for refund of contributions No Yes None None No No RRSP Yes, it is based on earned income Yes Yes, calculated at month-end Yes Tax-deferred Withdrawals are fully taxable No Yes None At the end of the 71st year No No TFSA Yes, a $5,000 annual limit, but there are no earning requirements Yes Yes, calculated on the highest excess during the month No Tax-free Withdrawals are tax-free – except for growth after death if no spouse/successor/holder Yes, in the following year No Age 18 None No Yes www.canadianchiropractor.ca
Chiropractic + Naturopathic Doctor February 2010: Page 40
