I read with great interest the C.D. Howe Institute’s recent paper, “The Piggy Bank Index: Matching Canadians’ Savings Rates to Their Retirement Dreams” by David Dodge, Alexandre Laurin, and Colin Busby. It highlights the challenges faced by individuals who are attempting to save enough for their retirement. These difficulties are intensified by relatively low contribution levels for registered retirement savings plans, and low investment returns.

 

In 2001, many provincial governments changed their incorporation laws to include professionals. Since then, lawyers have been eligible to incorporate their legal practices in Ontario.

 

Each year, the Federal Government of Canada collects close to $100 billion from individual tax payers; this is the government’s single biggest source of revenue.

 

How much do you need to retire?

The annual spring ritual is already underway — the mail out of tax-refund cheques to millions of Canadians. Every year, the federal government returns billions of dollars in overpaid taxes. The average refund in 2007 was approximately $1,400 — not a huge windfall, but still a sum that would be a shame to fritter away. As you know, your tax refund is not found money, it was your money all along that you lent Ottawa interest-free for the year. These funds should be put back to work for you.

With tax season just around the corner, the time has come to make your Registered Retirement Savings Plan contributions for another year.