In Canada we have two major tax incentivized accounts to save in.
The Registered Retirement Savings Plan (RRSP) - A savings plan that allows you to deduct contributions from your income tax and have tax deferred growth until retirement when you decide to use the money to live on. One day in the future your RRSP will convert to a Registered Retirement Income Fund (RRIF) which is designed to turn your retirement savings into income.
The Tax Free Savings Account (TFSA) - A savings plan that will allow you tax free growth. The TFSA is a great account for shorter term savings and for retirement savings.
A common misunderstanding about these savings plans offered by the government is that you are restricted to what you can own. You can actually hold a lot of different types of investments, with a variety of different providers, and can have as many as you want.
You can hold for example;
-Stocks
-Bonds
-Real Estate
-Mutual Funds
-Hedge Funds
-Mortgages
-Gold and Silver
- And More!
We are happy to be able to to provide all of the above.
- To view more about the differenced including a side by side comparison of the RRSP and TFSA click here
- For a great article on the pro's and con's of each with a head to head comparison click here
- To see the tax savings using registered accounts click here
- Check out this calculator to see the the power of using a TFSA
