This week we get into the nitty gritty of how an RRSP can help you defer taxes and put more money in your pocket today and in the future.
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Welcome to It’s Personal Finance Canada. I’m Christine Conway and I’m Cameron Conway and this podcast is a very personal look for personal finance in Canada.
Welcome to its personal finance Canada. I’m Christine Conway and I’m Camera Conway and this podcast is a very personal look for personal finance in Canada. *Hi Everyone, and welcome to It’s Personal Finance Canada. I’m Christine Conway and I’m here with Cameron Conway, and we are in the middle of a very busy RRSP season. *Everyone is looking back and all the good they did last year, all the money they saved or didn’t save, the income they made. And they’re trying to figure out what to do in this coming year. So what are their options? If what’s this RRSP thing we keep talking about? And why should I take my hard earned money and throw it at it? *Yeah, so today I think there’s an incredible advantage that a lot of working Canadians can find within an RRSP. So that’s what I wanted to go over today, because there’s some incredibly powerful tools that you can use to get a good handle on what this can mean for yourself and your personal tax situation. So let’s start right at the top. What would you say if I said, for most people, that if you put money into an RSP, you would actually increase the amount of money that you had available after you file your tax return to either save or put towards your other goals. *I’d say you’re wearing a wire and you’re working with the CIRA? *Not Quite, but the tax law in Canada does allow for people to put, not an unlimited amount, but a controlled and limited amount of money into an RRSP program. Now, keep in mind that an RRSP is a tax deferral program. And essentially what that means is that the money that you put in is not taxed today, it’s not tax tomorrow, it’s not taxed three or four or five years from now. Unless or until you decide to take the money out. So that’s one of the powerful tools that come with an RRSP. But the one that we really want to talk about today is the fact that an RRSP provides you with a tax deduction. So what is a tax deduction, you might ask. A tax deduction is very different than, let’s say, a tax credit, which reduces the amount of tax owing. A tax deduction actually reduces your taxable income, and that’s very important because here in Canada we have a system where as your income increases, your tax rate increases. So if I said to you that as your income increases and your tax rate increases, you can actually take a look. there’s there’s a way, and I’ll show you how to have kind of a sneak peek at how the tax brackets, both federally and in your province, integrate. So that you can determine how to get the most tax back relative to the amount of income that you’re making today. *So how does this work exactly? If I crawl up the tax ladder, do I get the same percentage points for every single dollar I earn? Is it different? How can I use this mystery program you just talked about to kind of give myself a better picture where I’m sitting? *Sure, so, it’s by province. So depending on where you are in this fine country it’ll be different. And today, because we’re here in BC, we’re going to talk about British Columbia and how those rates particularly integrate with the federal government. But if you’re somewhere other than BC, feel free to take a look at one of my favorite websites. I use this all the time specifically for this chart that they use. It’s called taxtips.ca and every year they compile schedule of tax rates by province. So if you have regular employment income. Even if you have dividend or other capital gains, information that is in there as well, but for our purposes we’re just looking at regular income. *So this site, it’s not just for CFP’s like you, anyone can use it and understand it. *Absolutely and the chart that I’m that I’m referring to is incredibly straightforward. Basically, all you have to do is determine what your income is, your earned income is for the year, and then boom, you’ll see what tax bracket you’re in and you’ll also see which tax brackets you’ve moved through to get there, so you can see how tax started at a lower rate. So, for example, here and BC in 2021, on the first $42,804 of income earned, you paid tax at the lowest combined federal and provincial bracket of 20.06%. And I should just say as a side note, that when you’re actually filing your tax return it’s not quite this simplified. So think of this as a tool just to give you a visual it’s a combined representation of federal and provincial tax rates, which are actually separate on your return. You’ll pay provincial tax, you’ll pay federal tax, but this is just so much easier to conceptualize and it is broken down by brackets. So if there’s a change to the federal bracket or a change to the provincial bracket, it is reflected immediately in the schedule. So it does work out on a dollars to dollars view as well. *So when I actually pull up this website look at it talks about earned income. Does that include like my lemonade stand? What does that mean exactly? *Good question. So we’re going to take this in the context of what qualifies for an RRSP deduction, because if it doesn’t qualify then you’re not going to get the tax back, and it’s a bit of a moot point. right. You’ll still get the benefit of tax deferral, but you won’t necessarily get that same extra bump that’s going to accelerate your your goals and the other things that you’re working towards. So if you are a working Canadian, most likely any employment earner or self employment income. That could also include rental income or royalties, things like that. So something you had to do something for. That’s typically considered earned income. Now if there’s income that was received from from other sources, like more passive sources. Dividends is a big one. If you’re a self employed individual, you have a decision of taking salary or dividends, and one of the little tricks here is that dividend income is actually not usable to create ours p room. So if you can’t use a dividend to create RRSP room, you do not get the corresponding deduction. So if you are self employed person and if you have dividend income, just keep in mind that that’s not counting in this particular context. *I guess another side note about dividend income, it can also make some murky waters and you’re applying for a mortgage or they will want your salary instead of dividends. So that kind of adds to the conversation of how you’re going to pull money out if you are a business owner. It’s kind of the pros and cons of little as tax up front, we don’t get the RRSP contribution room and it can make a harder apply for a mortgage even. *Absolutely, and I mean the tax system in Canada very much looks to equalize the tax is paid regardless of the source that it’s it’s being collected from. So well, there have been maybe greater advantages in the past in different forms of income splitting, things like that. I mean there’s now tax on split income rules. There’s all kinds of things that, as people find loopholes, the CRA looks for ways to close them. So what we want to do is take advantage of available loopholes, such as ours RRSP’s as much as possible. So as long as they’re still available to us, to continue to save this way. *So are you seeing that RRSP’s and this whole tax thing is a approved loophole by the Canadian government? *I would say so, you know what, and it’s it’s got a very specific design. The design is just this. It’s that people are not saving enough for retirement. We’re all kind of staring down the the barrel of a very long, hopefully and healthy retirement, but not a lot of pensions these days, fewer and fewer employers wanting to give them out. So this is again the CRA’s way of trying to be a bit of an equalizer and and saying, you know what, if you have a pension, maybe you get a little bit less RRSP room. But we are giving you an option to get some money back in taxes. So, like we had said before, because it reduces your taxable income, it’s as if that income wasn’t even earned. So the money that you would have otherwise paid to towards taxes, all other things being equal, is money that you’ll now receive back in your hands to spend. And I should make a comment as well that, when I’m talking about receiving a refund from an RRSP, it’s most common that if you’re a salaried employee, your employer is taking off the required amount of tax for the particular salary that you have. So if you were in $50,000 or $85,000 a year, whatever the number might be, they are actively remitting to the CRA on your behalf from your paycheck. You can see it every time you get a pay stub, it just comes off. So when you get that money back from the RRSP contribution, you’re actually getting paid tax back that you had already remitted to the CRA through these payroll deductions. *Yeah, there’s given you your money back without interest, kind of. *But it’s money that would be lost otherwise, right it’s money that would otherwise be collected and go into taxes and go into. *Rebuilding the prime minister’s house. *I was going to say general revenue, but all of the good and fine things that we have to do is contributing members of society. The other note would be is, let’s say, if you’re a self employed person or if you have multiple jobs, where maybe you haven’t been withholding as much tax as you will need to pay. When you look at that taxtips chart and you realize, okay, you know what tax has been withheld at a lower rate than what I’ll actually need. In those cases an RRSP contribution. It’s still reduces your income, but if you haven’t put forward enough income already in the form of prepaying those taxes, you could still owe money or you may owe slightly less because you’ve made that RRSP deduction. Is that kind of does that kind of make sense? So it’s not an instant money back. It does depend on how much you’ve paid already into the system. *So I’ve heard a lot of people say they’ll take whatever refund they get from contributing RRSP’s and they’ll say they should just put it right back into the RRSP. Is that a good strategy or they use that money for something else? *That’s an incredibly personal decision. I mean it is a great strategy in the fact that RRSPs have that tax deferral that we’ve talked about. And with saving for your retirement, you have to frame that conversation around how much money you have saved already, what government benefits you’re going to be getting, whether or not you already have a pension plan. Or is there another goal that you’re working towards? Maybe credit card repayment that has a much higher interest rate than you would get through your investment, let’s say, if you’re a low risk or medium risk investor and you’re trying to decide between putting that refund back into your RSP, where you’re targeting making maybe four or five percent, or paying down your credit card at eighteen percent. Well, you would take the one that provides the greatest opportunity. So I I like to say that, because this is found money, you use it to accelerate the goal that is most important to you and also that makes the most financial sense. So which one will get you the furthest ahead? *So if the goal is retirement, then throw any in that little bit extra money you can help you upgrade from cat food to spam. *It can super charge your savings and keep it keep in mind when you’re investing for retirement, because of the power of compounding interest, your biggest advantage is time. So the more money you can get in as soon as possible, the longer you’re giving yourself to allow that money to compound and grow. And I know I keep saying tax deferral, but it’s so important when you have money outside of an RRSP or outside of a TFSA, because, I mean, those are still relatively I guess you can’t say new anymore, but they haven’t been around forever kind of thing. It is such an advantage to not have to pay tax year over year over year on the growth. So that’s another huge reason that you would want to put money into your RRSP. That being said, when you’re choosing how much to put into your RRSP or at what level of income you should consider putting money into your RRSP, it’s it’s a good idea to take a look at how these tax brackets breakdown because I as I’ve said previously, with the emergence of TFSA’s, if you think you’re going to be putting money into an RRSP and then taking it out at the same tax bracket, and that usually happens if you put money in in a low tax bracket, so your income is under $42,000 in 2021. That’s the lowest tax bracket, or even the the second lowest tax bracket, which is just a couple percentage points higher, goes all the way up to forty nine $49,020. So under that threshold, if you’re in the first two brackets and you have TFSA room, I like to encourage people to look at using those. You get the same benefit of tax free growth and the advantage of taking out to it out later tax free as well. In the past, be before we had TFSA’s, people would put money into their RRSP’s just to get the tax deferral but they would save deducting it until a later year when they would be in a higher income. So if that’s something that you see for yourself, that you know you’ve got a career path where your income is going to be higher, it can be a great advantage to stalk up those receipts and save them for a later day. *How long can you hold onto those receipts and deductions for, like how many years you carried over for before they expire? *So there’s actually no limit. You can carry forward those the ability to take those deductions indefinitely. But you absolutely want to take them well you have employment income, because otherwise, if there’s nothing to reduce, you’re not going to get the money back, and getting that money back is one of the biggest advantages of being able to use an RRSP in this way. Also, I guess the other the other thing to keep in mind is the CRA rule, is that by age seventy one, your RRSP has to be converted into something income producing, whether that’s a RRIF, a registered retirement income fund or an annuity. But those are those are subjects for another day. So at that point in time, once the conversion is done, there’s of course no benefit because now you’re pulling income out and your past the stage where you’re putting income in to a savings program so it’s no longer an RRSP at that point in time. *So far it seems we’ve kind of talked about you as an individual using RRSP’s to your advantage. But what if you are married or in a common law relationship? You get any extra bonuses through this system? Or how does this work if it’s two of you together in a legal sets trying to use these RRSP’s? *That’s actually a great point. If you are in a common law or a marriage relationship, you have an extra advantage that is not available to a single person or someone who’s not filing their tax return as a common law status or is a married status, because now you get to choose between two individuals who probably have two different income levels, and you can decide which person is going to get those deductions. So think about it like this. If you have a person making a $150,000 and you’ve got a person making $40,000, the person making $40,000 is only going to get tax back at 20% if they put money into their own individual RRSP. But the person making over a $150,000 is getting tax back over 40%, combined BC federal. So that’s double. Essentially, that gives you a chance to double the amount that you can get back to accelerate your goal. So if you’re working as a couple, huge, huge advantage there. *So how common is this strategy? This has come up a lot in your firm? *Oh absolutely, and just to be clear on what the strategy is. So there are the ability. When you’re talking about a single person saving in an RRSP, they have no choice but to use an individual RRSP. When you’re in a common law relationship or a marriage relationship, you can add a new type of RRSP and that’s what allows you to pick and choose whose income you’re using to make the RRSP contribution. So the way that that would work is the higher income earning spouse. So let’s say I’m making a $150,000 and sorry, Cam, you’re making $40,000. Sorry, and let’s say that I want to take advantage of the strategy. Well, if I have available RRSP contribution room, because it’ll be my contribution room that’s going to be used to do this, I can open a Spousal RRSP in your name, and when I do that I’m doing two things. I’m contributing to a new account that now belongs to you, so I’m effectively giving you full control over this money. That means the investments will no longer be invested the way that I want. I could not do a withdrawal from this account. It becomes 100% your property. So what I couldn’t do is say I want to open the spousal account and we’re going to invest it a hundred percent in Tesla, because that’s what I’ve decided. What we would have to do is say I’m going to open this account and put it in, but actually you Cameron, are the owner in this account. It’s invested according to whatever your preference in stock is. *So you’re saying I confess everything in beans if I want to. You can invest everything in beans and even though I’m the contributor, I would have no say over what you would do in your account. It’s your property. So before someone takes this on. *I would just deal with you rolling your eyes every time I check my invoices? *That’s the one. Yeah, but before taking on this strategy, you would want to make sure that you’re comfortable giving this money to your common law partner or your spouse. Keeping in mind that in Canada, RRSPs are marital assets and that counts if your common law as well. So they are fully dividable. If you do separate or divorce. So even though you’re giving up ownership, essentially it’s a joint pot either way when you’re looking at it from that legal point of view. What about from his State point of view? Is this transferable for one to the other under the under these rules, or is they go to the estate? *No, if you set it up so that your spouse takes over your contract, there can be a tax deferred roll over to your spouse, even if it was a spousal account, and when the person, the previous person, passes away, the spousal designation is actually removed and it just reverts back to being a normal RRSP or a normal RRIF if it’s in the income producing phase. So let’s let’s talk about common law here in Canada and for the RRSP’s the federal definition actually applies. So if you’re filing your tax return common law, that’s very important because that’s something that will be looked at while you’re when you’re trying to open a RRSP for a spouse. You do want to make sure you’re filing common law. But the rule is actually just twelve months in a marriage like relationship and they even have a little loophole in there that if the relationship over that twelve months was bumpy and let’s say someone moves out, there’s a ninety day period if you’re if you’re separated for less than ninety days, you can still be considered common law. So it’s actually a fairly low threshold. But there are other considerations before you jump on the Common Law Bandwagon. A lot of government benefits are income tested. So when you go from a single person to a couple through filing your return as common law, that will automatically cause a readjustment to a lot of these government income tested benefits. So just keep that at the back of your mind. That is to say, this isn’t something that you would want to do just for this purpose. You would want to do it because you’re in a legitimate long term common law relationship and that is how you should be filing at that stage. So if you do decide that a spousal RRSP is the way that you want to go, and that difference in the combined BC and federal or whatever your province and federal tax brackets might be, provides that significant advantage to offset those other maybe just changes in the structure right like giving up the ownership, giving up control of the money, giving up the other person’s ability to take the withdrawals. That advantage can really help accelerate your timeline. So in my example, where one spouse was earning $150,000 and the other was earning 20%, or, sorry, not earning, earning the $40,000, then the tax is paying or the amount that that person would get back on the next dollar was was basically double. So that’s a pretty cool thing. There is a catch, and every catch we got to talk about those two. If your spouse decides to take money out of a spouse to a spousal RRSP within three years of you putting the money in, it gets attributed back to you. So that 40% that you got back your paying in tax at that same rate. Or maybe higher if your income has gone up. *So is that three years when you open the account or is that for every single deposit? *Every single deposit. So keep it running in the back of your mind every single time you put money into an RSP for someone else and just make sure that you’ve had that conversation with that individual and that you trust them to kind of do the right thing. And I mean a worst case scenario. It’s just undoing your tax planning really right and, like I said, you hope your income has an increased too much, because the big downside of an RRSP is you don’t ever want to take out money at a higher tax bracket than what you put it in at. You always want to take it out at a lower tax bracket than what you put the money in it. *And this is why it’s good to talk to actual financial plan or sometimes about these kind of things because of the rules changing and all the delicate intricacies were want to make sure you’re actually getting the most out of your money and your investments and you don’t accidentally do something that causes more problems down the road. *Exactly, well, and there’s always a sweet spot when we do these calculations, and every single person and is different because they might have different things going on right, different sources of employment income, different and with holding that’s done, pensions, things like that. But what I like to do when I’m doing the calculation for someone is I like to come up with a no more than or never exceed number for that particular tax here. The best time to do this is exactly now you’ve finished and closed out a tax here and then you get that first sixty days to take your last looks, to do your final calculations and to put any money as a top up into your RRSP. Now I always recommend that people save month to month to month anyways, just because it’s so much easier from a budgeting point of view to have it just calm off your paycheck right into an RRSP, right into a regular savings plan, so you’re not kind of scrambling last minute to get those dollars together to get that deduction. But you may find when you do your last looks that you want to do a lump sum to offset some tax. But let’s talk a little bit more about this concept of having a never exceed number for your RRSP and your fiscal red line. *Kind of is it’s like if you’re flying an airplane and you’ve got that never exceed line. Exceed the line, you’ll blow up right, it’ll become structurally unsound, bolts and nuts and things will start shaking. You don’t want your wings to fall off. This is essentially to keep you in a higher tax bracket. Or, sorry, the better way to say that is to keep your deduction in the higher tax bracket and to make sure you don’t accidentally cross down into a lower tax bracket where you’re receiving less of a benefit than you would otherwise. *So do you have a quick way to help figure out what this red line is? *I do, if you’ve gone to taxtips.ca or any other website that does this combination of federal and provincial tax brackets. What you’re going to want to do is look at what tax bracket you fall in now and how much room do you have, accounting for any other deductions or pension contributions things like that that would take you to the next lower tax bracket. So let’s say, as an example, you earn $60,000 in just a job that you have as an employee. You’re a T4 salaried employee and you don’t have any other income sources. So it’s what you got, it’s what’s coming in and it’s what you’ll pay tax on at the end of the day. Now, when you look at $60,000 of income, and I’m looking at my combined BC and federal marginal tax rates, that $60,000 the tax on the next dollar earned is at 28.20%, and the bracket goes from $49,020 all the way up to $84,369. So your $60,000 is right in there. So what I do is I subtract out the $60,000 from the top end of the next bracket because once you’ve dropped your income below the $49,020 in 2021, you’re only going to get tax back at a rate of 22.07%, which doesn’t make more sense. You’d rather save that for a following year or carry it forward to a following year where you could get tax back at 28% or whatever the tax brackets maybe in future years. But I would say in that scenario, if, let’s say in this example, you don’t have a pension that you’re contributing to, there’s no group RRSP’s or anything, you’re doing this all on your own. There’s no major credits like tax deductions, or there’s no major charitable or medical or things like that. Essentially, I’m just subtracting out the two numbers and that would give you $10,980 that you could potentially get tax back on at 28%. But any more, so if you put in $11,000 or $10,981, then that dollar, that extra dollar that’s over that threshold, you’re only getting the tax back at 22.07%. Does that kind of make sense? *Yeah, it does. It helps kind of set of target of how much of your RRSP contribution to actually use to benefit you more today. *Exactly, and it’s really trying to maximize the fact that we have this progressive tax system in Canada. So why would I want to get a deduction at a lower rate, especially when I have access to vehicles like tax free savings accounts, which gives me more liquidity and more flexibility with access to my money? But if I’m in a higher bracket or if I have a spouse in a higher bracket and we’ve decided we’re interested in espousal RRSP strategy, there can be a huge advantage to these higher tax brackets. For example, the highest bracket last year was at $220,420 and tax on that dollar back any amount over that was at 53.5%. Granted your paying tax at that rate. You’re paying tax at 53.5%, but if you can get some of it back, why not? Kind of thing. And really, if you look at these schedules, the breakdown at this stage, once you’re over about $150,000, you’re crossing into that 40% mark and it just kind of goes up from there. That being said, these things can change, right. It’s subject to the whims of the governments and politic king at the time. But but all you can kind of do is look at this year, look at last year and make the most of essentially what you have today. *Ok, I guess I think I understand your fiscal red life or our RRSP. So I let’s say that, example, I’ve got $10,000, but do I actually have $10,000 dollars worth of room to put into an RRSP without CRA coming after me? How do I know how much I can actually put into a RRSP without setting off all the bells and whistles out in Ottawa? *That’s a great question. So I will say two things about that. The first I would say is if you were in our example at the $60,000, that $10,000 gives you $2,820 back that you can use to something else, and I always encourage people to use that money towards something else. Now to your point of not setting off all the alarms and all the bells and whistles and all of that stuff. The best way to find your personal number is to go straight to the source, the CIRA. When you file your tax return, after they’ve received it and reviewed it, they send you back what’s called a notice of assessment and it essentially means someone here at the CIRA has taken a look, we’ve done our checks and balances, and that’s where they tell you, Yep, we’ve accepted your return, you have nothing left to pay, or you owe us a bit more money or oops, we screwed up, here’s a little bit more back. It’s kind of their their own last looks at your return before they set it aside. *So they just kind of confirmed they you paid what you owed. You got back what you’re supposed to get back, they spun the wheel of audits, make sure you didn’t have to get one, and they tell you what you can give for your RRSP for the upcoming year. *Yes, and so what they do is, throughout all of your employment history they’ve kept a running tally of 18% of your income up to the maximum, and that maximum in 2021 was $27,830. So what that means is every year either 18% of your income or to the maximum, which is added to your contribution room, which means it’s available to you to put that amount of money, but no more, into your RRSP. *So let’s say I haven’t contribute to my RRSP for five years. Do I have the 18% for those five previous years available to throw in? So let’s say I finally got a really good job. I pushed up a couple tax brackets. I’ve got five years of contribution room can I just make one big lump sum? *Absolutely, but keep in mind are never exceed line. Right. So if you make a big chunk into your RRSP this year, take time talk to your tax preparer, talk to a financial planner do that calculation and make sure that you’re not dropping yourself too far in the tax brackets. But you’re absolutely correct in that your unused RRSP contribution will remain available to you for the rest of your care are all the way up to seventy one really, when your RRSP is no more and becomes something else. That being said, if you’re lucky enough to have a pension or a group RRSP or one of the very many other kinds of savings that are now available that employers come up with. Like there’s deferred profit sharing plans, there’s employees share purchase, there’s a whole bunch of them these days. There are always reductions to your RRSP contribution limit if someone else, AKA an employer is putting money in your behalf. So that’s in your name, into a retirement product. So it’s a product that is designed to pay you income later on when you retire. Group RRSP’s and define contribution plans are actually one of those tricky spots just because of how that they’re handled. Your employer who’s making a group or RRSP contribution or define contribution for you does not necessarily have to withhold that tax or make that tax deduction for you from your paycheck, but they do have to include it as a taxable benefit. So it’s going to be taxable to you because it’s money that the company has given to you, but they may not have necessarily remitted that tax to the CRA on your behalf because, depending on the type of plan and how its struct sure they may not have had to. So that is something that you would want to keep in mind. More commonly, if you have a defined benefit pension plan, so that’s that’s kind of those gold standard you know what you’re going to get at age sixty, sixty five and beyond. Those are called registered pension plans, and a registered pension plan will give you what’s called a pension adjustment, and that’s pretty well exactly what you were referring to. If you get a pension adjustment, that’s $5,000 on your $7,000 limit, it will reduce it by that amount. So then you would only have $2,000 that you could put into your RRSP. And because the CRA doesn’t necessarily like people going over, you actually do get a $2,000 buffer. So until if you over contribute by accident and your less than $2,000, wait until the next year when you’ve got a little bit more room accumulated and you can kind of call it a wash. But if you’ve really gone over that $2,000, the CRA will take notice and they’ll start penalizing you and you’ll be paying tax at about 1% every month that that excess stays in your RRSP. So it’s really not something that you want to do. But going back to employers contributions into RRSP’s, like I said, because there’s so many different types and sources is and ways of setting up these plans and such a huge variance there, what is the easiest, other than talking to your HR department, because of course they can always help as you can always look at your T4 slip, your T4A, depending on what you receive. They have to show on on your slip if there’s been a contribution on your behalf. So like, for example, … registered pension plans, you’re usually going to see a contribution in box twenty and if there’s been like a past service or something like that, it can be either in the other information section or in a box seventy five, kind of thing. But if you’re not sure, you can take your tax lips to a tax preparer or to an accountant and essentially say, can you please explain to me what has been taxed, what has not been taxed? Can I get a deduction on this amount? What about my employers contribution? And they can provide some clarity there. So that was our little cheat sheet to help you do it yourself, if that’s your thing, or if it’s not your thing, at least to give you some understanding on how this all works. It’s not Voodoo. It’s usually very simple math and it’s just more having an understanding of what the moving parts are, what parts are are deductible, which have been deductible, what hasn’t been, that kind of thing, and how it integrates with the rest of your ex picture, which is a little bit more than we’re going to have time to get into today, but that is, of course, maybe more of a complexity to something that that we showed as a very basic calculation. So the the straightforward calculation that we showed you will work. But if you have a bunch of extra stuff going on with pensions or with other medical or charitable or other things like that, you can always come talk to us. We love helping people set up RRSP’s at Braun Financial, and I mean we always say to feel free to talk to your accountant or your tax preparer. They’re there to help and they’re a great source and a great wealth of information. I know I’d be lost without my accountants, so it’s it’s good to have as much knowledge as you can. But hopefully that gave you a little bit more clarity on what is usually shroud in mystery and made to be much more complex than it has to be. So, until the next time, thanks for joining us. I’m Christine Conway, sitting here with Cameron Conway, and thanks for tuning in and will will talk to you next time. Until then, take care and all the best.