Each person has unique retirement goals, we work with our clients and as we are not tied to any one service provider we find products that best meets our client's retirement objectives. Understanding these products sometimes feels like a daunting process...here is a basic 101 of investment plans. Contact us today for an appointment and it would be our pleasure to review all these products in a more in depth fashion with you.
Tax-deductible Contributions – You get immediate tax relief by deducting your RRSP contributions from your income each year. Effectively, your contributions are made with pre-tax dollars.
Tax-sheltered Earnings – The money you make on your RRSP investments is not taxed as long as it stays in the plan.
Tax Deferral – You'll pay tax on your RRSP savings when you withdraw them from the plan. That includes both your investment earnings and your contributions. But you have deferred this tax liability to the future when it’s possible that your marginal tax rate will be lower in retirement than it was during your contributing years.
RESP ~ Registered Education Savings Plan
A Registered Education Savings Plan, or RESP, is an investment vehicle used by parents to save for their children's post-secondary education in Canada. The principal advantages of RESPs are the access to the Canada Education Savings Grant (CESG) and a source of tax-deferred income.
RDSP ~ Registered Disability Savings Plan
A registered disability savings plan (RDSP) is a savings plan that is intended to help parents and others save for the long term financial security of a person who is eligible for the disability tax credit (DTC)
TFSA ~ Tax Free Savings Account
A Tax-Free Savings Account (TFSA) is a flexible investment account that can help you meet both your short- and long-term goals. Investment income in aTFSA—whether you're earning interest, dividends or capital gains—are not taxed, even when withdrawn.
RRSP, TFSA or RESP ~ The Differences Explained
LIRA ~ Locked In Retirement Account
A Locked-In Retirement Account (LIRA), and the virtually identical Locked-in Retirement Savings Plan (LRSP), are Canadian investment accounts designed specifically to hold locked-in pension funds for former plan members, former spouses or common-law partners, or surviving spouses or partners. Funds held inside LIRAs/LRSPs will normally only become available (or "unlocked") to holders upon retirement.
James Colton B.PE (Honours), EPC