Achieve Financial Freedom with Personalized Investment Plan

A Registered Retirement Savings Plan (RRSP) is a savings plan, registered with the Canadian federal government that you or your spouse or common-law partner can contribute to for retirement purposes. When you contribute money to a RRSP, you get a tax deduction upfront in the year you make the contribution. Also, as long as you keep the money in your RRSP account you don’t pay tax on any investment growth you earn in the account, you generally have to pay tax when you start making withdrawals from your account.

You have until March 1 to contribute and enjoy tax deductions for previous year. For example, you have time until March 1, 2023 for contributing on your RRSP and deducted from your 2022 income. You can still do contribution after this date; however, you can be deducted from your next taxable income.

A Registered Education Saving Account is a saving account for your child’s post-secondary education.

RESPs let you put money aside for your child’s post-secondary education. By contributing to this account, you will receive benefit from generous government grants.

The way it works is you contribute to the account and government will match it up to 40% of your contributions, depending on your family income.

For each child, total family contributions to get the maximum grants are $2500 per year, and government add Canada Education Savings Grant (CESG) up to $500 per year. with a lifetime maximum of $7500 in grants. Also, may qualify for Canada learning bond (CLB) and some provinces contribute Education saving grant to this account. You can contribute up to $50,000 lifetimes per child.

There is no loss if your child does not go to post-secondary education, you can designate another child in the family to the account or withdraw your contributions or transfer the money to an RRSP under certain conditions.

A non-registered account is the type of investment account that there is no limit on annual contributions. It is a great idea to invest your money in this account when your contributions limit on RRSP and TFSA are maximized. This account is subject to tax on return generated in the account.

There is no tax deduction upfront, but when set up properly you can pay half the tax on the way out.

Segregated funds are very similar to mutual funds, with additional major advantages. They are a type of investment made up of equities, bonds or money market securities. Since they are offered by insurance companies, they come with guarantees that protect the amounts invested against market downturns.

To maintain investor interest, segregated fund assets are managed separately from those of the company, thus the designation “segregated funds”.

A First Home Savings Account (FHSA) is a savings plan, registered with the Canadian federal government that you can contribute to save for a down payment and buying your first home. When you contribute money to a FHSA, you get a tax deduction upfront in the year you make the contribution. Also, as long as you keep the money in your FHSA account you don’t pay tax on any investment growth you earn in the account, and allowing tax-free withdrawals for a first home (First home buyer qualification is required)

A registered disability savings plan (RDSP) is a savings plan designed to assist an individual who is approved to receive the disability tax credit (DTC) to save for their long-term financial security.

RDSP Contributions are not tax deductible and contribution withdrawals are not taxable, However, the Canada disability savings grant (grant), the Canada disability savings bond (bond), investment income earned in the plan, and the proceeds from rollovers are taxable to the beneficiary when paid out of the RDSP.

Contribution can be made until the end of the year in which the beneficiary turns 59.

GIF/GICs offer a fixed interest rate that is guaranteed for the life of the investment contract. They guarantee 100% of your capital at maturity.

These often come with a locked-in time period, like a 1 year or 2 year GIF/GIC’s, for example. The money would be locked-in, and at the end of the pre-determined and agreed upon time period you would get your initial investment + the guaranteed interest.

The HISA offers high returns with no minimum investment and no maturity date. Means you can invest as much as you want and make withdrawals at any time, making them very flexible. It is great idea for your short-term goals, emergency funds or waiting for the right time to invest.