As retirement approaches, your budget often changes: some expenses decrease, while new priorities emerge. In this context, it can be helpful to review your savings tools to maintain flexibility. Thanks to its tax-free withdrawals, the TFSA can be part of that reflection. Here are three reasons to consider it before — and during — retirement.
Creating a budget can feel restrictive at first. In reality, it’s simply an effective way to better understand where your money goes and regain some control over your finances. By taking a close look at your income and expenses, you gain useful reference points to make informed decisions and, at your own pace, develop healthier spending habits. Here are three practical tips to help you build a budget that truly works for you.
Wondering what to do with your tax refund this year? What if it became a lever to make your plans come true?
Of course, you can always treat yourself or spoil your loved ones. But reinvesting your refund—in a TFSA or your RRSP, for example—could significantly increase your savings’ value.
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.
Do you have life plans on the horizon—such as going back to school, buying your first home, or taking a family trip? You can turn these plans into reality by setting clear, realistic savings goals. An automatic savings strategy is an effective way to reach them, whether they are short or medium term, or long term like retirement.
Can an RRSP only be used for retirement? The markets are so volatile, is it worth it to open an RRSP? Isn’t having an RRSP 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 savings vehicle.