registered accounts

ADVANTAGES OF RRSP

Your money goes further when you defer the taxes to retirement and that's what an RRSP offers our clients. RRSP contributions help your money grow faster towards the time you will need it most. It helps you save faster because contributions, income and gains within the RRSP are not taxed, only what you draw from your RRSP when you retire is taxed. Wealth management solutions for your portfolio may include an RRSP savings option. These types of accounts have stabilized rates of return and can include a variety of investment options as part of the RRSP

TFSA vs. RRSP

Contributions to your TFSA are made with after-tax dollars, however, any gains made inside the TFSA are non-taxable and you are not taxed on withdrawals. Your RRSP provides tax savings when you put your money in, however when you withdraw, you will be taxed at your marginal rate.

TFSA meets both short and long-term savings needs, while the RRSP is still the best for retirement. As a "rainy day fund," the TFSA makes the most sense, while the RRSP works best when it sits around patiently waiting for your 65th birthday: eating, growing, and not going anywhere.

Monies placed in the RRSP are tax deductible – thus reducing income tax you owe for that year; however, the taxes are merely deferred, and will be assessed when the money is withdrawn. While TFSA contributions remain part of your annual taxable income.

To reach savings goals: new home; automobile; college assistance for children, the TFSA is the best choice and the income is not taxable. While it can be considered a flexible investment account, the more common use of a TFSA is to help clients reach savings goals and take advantage of the tax-free potential. There is no earned income requirement for a TFSA but there are contribution limits: in 2019, the limit is $6,000.

Registered Education Savings Plan

If saving for your children’s education is a priority, then an RESP might be the ideal type of account, as there are usually government grants available to help those savings grow even faster!

Registered Retirement Income Fund

In the year you turn 71, you must convert your RRSP to a RRIF, and start withdrawing a minimum amount the following year. Earnings in a RRIF are tax-free, and amounts paid out of a RRIF are taxable when you receive them.

Retirement income overview

Your retirement income will typically come from a number of different sources. You may be eligible for CPP/QPP and OAS or other government benefits – and you may have a company pension. You also need to turn your savings into a retirement income stream to help meet your financial needs throughout retirement. Find out how you can invest your savings to provide a steady stream of income so you can enjoy your retirement years to the fullest.

Annuity products

An annuity guarantees you will receive an income for life, or as long as the annuity contract specifies. Your retirement income will be secure from both market and interest rate risks.

Segregated funds

Segregated fund contracts, like mutual funds, are market-based investments, but because they are insurance contracts, they also have additional benefits, including efficient estate settlement. There are a number of segregated fund contracts that combine capital protection with growth potential. Your savings will be protected. When your contract matures or when you die, your savings will be guaranteed to return a minimum of 75% up to 100% of the money you put in (less withdrawals).Some segregated fund contracts also offer guaranteed lifetime income.