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I'm trying to find a calculator or something online but can't seem to.
If you make approx. $30,000 per year, and your employer is matching your $25.00 (for a total of a $50.00 deposit) bi-weekly into a group savings or a group RRSP. What should you do?
You really wouldn't get much a tax savings would you with that income?
Thanks!
From what I understand from your posting, you are looking for a calculator to show if you make 30k a year, what is the refund if you contribute $100 monthly?
If this is the case, you have a couple of options
1. When you prepare your taxes via software or having someone else prepare them for you, you can quickly see what, if any, your refund will be.
2. Ernest and young have a simple calculator as well.
http://www.ey.com/CA/en/Services/Tax...1-RRSP-Savings
3. I have provided a link to Mackenzie financial (I don't work for them). This will help you calculate what your monthly contributions will look like when you retire. This is only an estimate, there is a lot of factors that goes into what you will have at the end.
http://www.mackenziefinancial.com/ca...calculator.jsp
4. Vancity provides an easy to understand calculator that you may use to figure out as well what retirement will look like and what may be needed.
https://www.vancity.com/Planning/Calculators/
Some factors to consider when calculating your retirement : Any pensions you may receive, contributions to your RRSP's, OAS and CPP, and perhaps the value of your home if you have one. (eg, your home may be valued at 1 million when you retire, you sell it and then purchase a condo for half that amount). Also a number to consider when figuring out your retirement is what is needed on a yearly basis. Usually around 55% to 75% of your pre retirement income is a good number to consider. Hopefully by then you have no mortgage, no car payments, no more kids living with you etc.
If you are asking about a tax refund, you would get approximately 20% back at tax time. Your average tax rate on $30,000 /yr would be 13.5%, but your marginal tax rate is around 20%. However, your employer may already be calculating this into your tax withheld at source.
But you are not contributing to an RRSP for the tax savings.... you are contributing for your retirement. And if the company you are working for is going to match your contribution, you should maximise it!
$50 bi-weekly turns into $1300 per year... nothing to sneeze at.
Are you asking if you *should* contribute to your RRSP through the company? YES! Oh big fat yes!! That's like doubling your money! Or finding $25 every two weeks! :blob3: It's like stacking coupons, but instead of getting stuff, you get M-O-N-E-Y. That's the...best...deal....ever.
Oh, you know what I mean.... :cheesygrin:
I "know" several people in Nigeria.....:lolsign: