Whether you should invest in a Tax Free Savings Account (TFSA) or a Registered Retirement Savings Plan (RRSP) is a question that affects almost every investor. For most, the answer is “a bit of both.”
If you have a looming short or medium-term need (under five years), the untaxed TFSA withdrawals are likely the right choice. For longer term retirement needs, you’ll want to invest in an RRSP.
With a new year comes new tax numbers! Below is a quick reference of important tax numbers for three years, including 2021. CRA has utilized a 1% indexing (inflation) for those numbers subject to that condition.
Investors often are conflicted on what to do with surplus cash. Your options for available cash usually fall into three categories: spending it, investing it, …
While uncomfortable to think about, effectively planning ahead for when you are no longer here can save your loved ones a great deal of time, money, and emotional hardship. Estate planning can be complicated, but there are some basic “must-do’s” that should be regularly updated and reviewed. Below is a simple checklist for making sure your estate plan is up to date.
Current economic conditions have interest rates the lowest they have been in years. Central banks lower rates in time of economic downturn to stimulate the economy. This can make borrowing money seem very appealing. It is important to keep in mind when borrowing that interest rates will not stay low forever. Canadians need to prepare for an eventual period of rising rates, as it will impact mortgages, lines of credit, student loans, savings accounts, and investments. A survey conducted by IPSO in 2016 indicated that 48% of Canadians are just $200 away from not being able to meet their financial obligations. With the current low rate environment being as appealing to consumers as it is, it is possible to take on debt that may become a strain once interest rates rise again…whenever that may be.
The cost of university has risen sharply, and so has the importance of graduating with a desired and marketable set of skills and knowledge. Without a post-secondary education, employment and life opportunities are more limited now than ever before. Contributing to a grandchild’s education helps them and their parents, and helps you stay connected in a meaningful way.
Whether you should invest in a Tax Free Savings Account (TFSA) or a Registered Retirement Savings Plan (RRSP) is a question that affects almost every investor, regardless of age or amount of savings. For most, the answer is a bit of both. If you have a looming short or medium-term need (under five years) that will require funds, the untaxed TFSA withdrawals is likely the right choice. For longer term, retirement needs, you’ll want to invest in an RRSP.
Registered Retirement Income Funds (RRIFs) are an investment vehicle that are designed to payout the assets you’ve accumulated in your saving years. RRIFs are essentially a continuation of your RRSP except instead of being used to accumulate funds they are used to start paying out funds.