Business TheReview Wednesday, January 23,1991 — A13 | eAll ages can get the most from RRSPs Find your number below to find whether you should be getting excited about RRSPs. Also check the other age categories in case - you are more mature — or younger — than your age. Remember: (a) You deduct from your income money you contribute to your (or a spousal) registered retirement savings plan. (b) Funds in an RRSP can grow tax free. (c) Money received back from an RRSP must be added to income. Also remember to balance (a) saving now to have more to spend later with (b) spending and enjoy- ing now. — 17-20: Get into a regular | RRSP savings habit early and that @ habit should pay big dividends in the future. Perhaps set up an automatic monthly contribution program; no matter how small. Put $1,000 a year between ages 18 and 25 into an RRSP com- ~ pounding at 10 per cent and you will have $442,593 at age 65. If you start only when you are 25, you will have to contribute $1,000 a year for the next 40 years to accumulate the same $442,593. If a student contributes to an RRSP and so ends up with little or no taxable income, then unneeded education and tuition credits may be transferred (within limits) to a supporting parent or grandparent. — 21-30: You might use an RRSP for a short-term objective. ‘# Coniribute while you are working to save tax. Then perhaps with- draw some of the money in a year when you return to school, travel or otherwise have little or no income. You will pay back little or no tax. Contribute to a spousal RRSP if. your spouse plans to take time off to raise a family, Once three years have passed since you made any contibution to any spousal RRSP. your spouse may withdraw the funds and probably pay little or no tax. This money could be used tow- ard buying a home or paying down -