Tax Free Savings Account (TFSA)
- Tax-Free Savings Accounts are registered investment accounts that allow you the flexibility to save for both your long and short term goals. Deposits and growth on the investment can be withdrawn.
- The 2024 limit is $7,000. Any unused contribution room will carry forward for upcoming years.
- The total room available in 2024 for someone who has been eligible since its inception in 2009, but has never contributed, is $95,000.
Registered Retirement Savings Plan (RRSP)
- Starting a Registered Retirement Savings Plan will likely be one of the most important steps you take in your financial life. You are able to reduce your taxable income and save for the future at the same time.
- It is important to plan for your retirement as Canadians, on average, are living longer. Retiring at the age of 65, a man is expected to live for 19 years in retirement and a woman for 22 years.
Investment Accounts
- Build an investment portfolio outside of your registered plans.
- Structure investments to minimize tax and target your investments towards a specific goal.
Registered Education Savings Plan (RESP)
- RESP's are a tax deferred education savings vehicle for post-secondary education.
- RESP's have a lifetime maximum contribution limit of $50,000 per beneficiary. However, the federal government will give your education savings a boost with a 20% Canada Education Savings Grant (CESG) on the first $2,500 contributed annually.
First Home Savings Account (FHSA)
- The new Tax-Free First Home Savings Account offers Canadians a way to save for a down payment for their first home.
- A FHSA is a registered plan which gives prospective first-time home buyers the ability to save a maximum of $40,000 on a tax-free basis. Contributions are tax-deductible and withdrawals to purchase a first-time home are non-taxable. The annual contribution limit is $8,000 and the holding period is 15 years.
Life Insurance
- Make a key decision today that your future self will thank you for. One way to contemplate the value of life insurance is to envision how great of an impact it might have if it ever needed to be utilized.
- Life insurance proceeds, when properly structured, are not deemed part of your estate and are protected against estate taxes.
- Depending on your financial and life priorities, life insurance may be one of the soundest investments you'll ever make.
Disability Insurance
- What if you become sick or injured and your income stops? Would you be able to meet your ongoing obligations? How would your family be affected?
- 1 in 3 people, on average, will be disabled for 90 days or more at least once before they reach 65. (Source - Canadian Life and Health Insurance Association - Guide to Disability Insurance)
- Disability insurance is vital to provide an income when you can no longer earn an income.
Critical Illness Insurance (CI)
- Critical Illness Insurance is a tax-free lump sum payment to deal with the unexpected expenses associated with the recovery from a life threatening illness.
- Why is Critical Illness Insurance important? Read Ken Ripplinger's personal story:
