TORONTO, ONTARIO — (Marketwire) — 01/23/12 — With Registered Retirement Savings Plan (RRSP) season in full swing, many Canadians are gearing up to make an RRSP contribution before the February 29th deadline. This, however, might not be the case for small business owners, who are often more focused on investing in their businesses rather than on their own retirement:
“Small business owners often find themselves torn between investing in their business and saving for the future,” said Cathy Pin, Vice President, Commercial Banking, BMO Bank of Montreal. “Although it-s tempting to concentrate on investing in your business, it-s critical for entrepreneurs to have personal retirement savings as well, since they can-t rely solely on the future value of their business to provide for their retirement.”
An RRSP can offer significant advantages for small business owners who are trying to accumulate wealth outside of their business:
“Similar to the plans you make in order for your business to succeed, how you plan to fund your retirement needs to be considered as well. Even if your business meets all of your financial needs in retirement, the money you save and invest in an RRSP can supplement your income for a more comfortable retirement,” said Tina Di Vito, Head, BMO Retirement Institute and author of 52 Ways to Wreck Your Retirement…and How to Rescue It. “Adding an RRSP to your retirement income plan is one of the best ways to save, offering tax-deferred compound growth that can give small business owners a safety net as retirement approaches.”
For more information on how to save for retirement, please visit:
Contacts:
Media contacts:
Amanda Robinson, Toronto
416-867-3996
Sarah Bensadoun, Montreal
514-877-8224
Laurie Grant, Vancouver
604-665-7596