Are you receiving a tax refund this year? There are several advantages to reinvesting that money. Of course, you could use it to treat yourself or your family but consider how contributing the tax refund to your Tax-Free Savings Account (TFSA) or your Registered Retirement Savings Plan (RRSP) could work for you.
Do you have projects in sight like going back to school, buying your first home or taking a family trip? You can bring these projects to life by setting realistic savings goals. Implementing an automatic savings strategy is a good way to achieve these goals whether they are short, medium or long term like your retirement.
An RRSP is a tax-deferral tool that helps you save for retirement. A TFSA is a savings tool that you can also use for retirement, as well as the other projects you have going on. In other words, we have two plans with two different sets of goals. Choose the one that best suits your needs and goals or combine them to maximize their benefits.
Can an RRSP only be used for retirement? The markets are so volatile, is it worth it to open an RRSP? Having an RRSP is pointless if I have to pay tax on it once I’m retired?
Let’s set the record straight and correct any misconceptions that might be stopping you from making the most of this saving vehicle.
An RRSP is an excellent retirement savings tool. Still, you should be aware of the rules and other good practices that come with it.
Here are 4 pitfalls to avoid if you want to get the most from your plan and achieve what’s most important to you.
Good news! You don’t have to choose between the home buyers’ plan (HBP) and the tax-free first home savings account (FHSA). You can use both when buying your first eligible property.