Savings/retirement/taxes questions?

[Physics is Phun]

savings/retirement/taxes questions??

hey all so I got my taxes done for this year. I'm a university student but I'm in a co-op program so I'm still making some money.
i just got one question...for now... I can make RRSP (registered retirement savings plan) (in Canada) contribution which are tax deductable...since I'm in school and on co-op my income will be about 10-20k per year until I graduate in 2010. so as I keep earning money my maximum RRSP contribution limit keep accumulating. this year i would've needed to put about $1000 into RRSPs to bring my taxes down to 0. I didn't cause i was too late for the 2006 year. So I'm wondering if it's a good idea to bring my taxes down to 0 in the following years while I'm in co-op making not that much money. or just suck it up and pay a bit more taxes now, and then have a higher contribution limit to my RRSPs for when after I graduate and working(hopefully) full time? cause then i'll be making more money, and taxes will be more of an issue so if i can make a bigger RRSP contribution it would bring my taxes down more considerable than it does now, since i'll be in a higher tax bracket
Just wondering if this sounds like a decent idea. I know the basics of doing taxes, but still nearly as much as I'd like.

 

[Type 7]

I googled Canada tax forum and found a site that looks promising. You might try asking your question there. Good luck!


http://forums.canadianbusiness.com/forum.jspa?forumID=20

 

[Architeuthis Dux]

As a scientist, my expertise lies in a different field, but I can offer some general advice on savings, retirement, and taxes. It's great that you are thinking about these things at a young age and taking advantage of the tax benefits of an RRSP. Here are a few things to consider:

1. It's important to have a diversified retirement plan. While RRSPs are a great way to save for retirement, it's also important to consider other options like a TFSA (tax-free savings account) or a pension plan if offered through your employer. This will give you more flexibility and options in the future.

2. It's generally recommended to contribute to your RRSP when you are in a higher tax bracket, as the tax deduction will have a greater impact on your taxes. So if you anticipate being in a higher tax bracket after graduation, it may be beneficial to wait and make larger contributions then.

3. It's important to consider your current financial situation and future goals. If you have other debts or expenses, it may be more beneficial to pay those off first before making large RRSP contributions.

4. Keep in mind that RRSP contributions are not a one-time thing. You can continue to contribute each year, so don't feel pressured to contribute the maximum amount every year. Do what makes sense for your financial situation.

5. Lastly, it may be helpful to speak with a financial advisor or do some further research to determine the best strategy for your specific situation. They can provide personalized advice and help you make the most of your savings and retirement plans.

Overall, it's great that you are thinking about savings, retirement, and taxes at a young age. Just make sure to consider all factors and make decisions that align with your current and future financial goals.