Our priorities and needs keep on changing throughout our life. It is important to understand the options available to us to reach our goals. You may be planning to save to buy a house, may be planning to save for the education of your children, may be planning to save for the wedding of your children and/or you may be saving for your retirement.
There are many investment solutions that can help you to prepare for tomorrow. Your advisor can help you select the investments that will have the best chance of performing within your risk tolerance. Every investor has a different risk tolerance level and will react differently to the market fluctuations. Your advisor will help you determine your risk tolerance and will recommend investment options that best suit to your circumstances. Good financial advice with a wide range of investment solutions can help you balance your financial priorities while building wealth for your current and future needs.
The products available are mutual funds, segregated fund contracts, annuities, GICs, etc. These can be either through registered or non-registered plans. RRSP and TFSA are registered savings vehicles to invest in mutual funds, segregated fund contracts, annuities, GICs, etc.
Registered Retirement Savings Plan (RRSP) is a retirement savings plan to which you or your spouse or common-law partner contribute. Your income is reduced by the amount you contribute to the RRSP and your income tax liability is reduced accordingly based up on your income-tax bracket. The income you earn in the RRSP is exempt from income tax as long as the funds remain in the plan. You have to pay tax on the amount you withdraw from the plan as the amount withdrawn is added into your income of that year. Funds can be withdrawn tax free under Home Buyers’ Plan and Lifelong Learning Plan.
Tax Free Savings Account (TFSA) is a flexible general-purpose savings vehicle that allows Canadians residents (age 18 or above) to save for short term and long term needs. The income earned in TFSA is tax free. Withdrawals from a TFSA are also tax-free as contributions are not tax-deductible.
