A Registered Retirement Savings Plan reduces your taxable income by the eligible contributions you make, then grows those contributions tax-deferred. And if you withdraw the funds later on for important things like a down payment on your first home or for tuition, your withdrawal can be tax-free.
Benefit: Reduce taxable income
As the name suggests, this is an RRSP for a group. And with greater purchasing power as a group, additional perks can be applied to sweeten the deal.
Benefit: Greater purchasing power
Ever wish you could deposit money in an account, have it grow tax-free, then withdraw that money tax-free too? That’s essentially what a TFSA is, and it’s every bit as good as it sounds.
Benefit: Grow tax-free!
When it comes to saving for post-secondary education, there’s nothing better than a Registered Education Savings Plan. The Government of Canada will match up to 20%, 30% or even 40% of your contributions. Certain RESP products even provide additional bonuses and incentives on top of that, such as competitive yields or an additional matching contribution. And just like an RRSP, your contributions plus the government’s matching contributions grow tax-deferred. And when it’s time to withdraw, the monetary gains are taxed in the child’s hands, making the taxes, if any, much easier to swallow.
Benefit: Save for education
In times when someone you know has special needs, it’s nice to know there’s something to help pay for them down the road. A Registered Disability Savings Plan is similar in many respects to the RESP model, except the Government of Canada will match up to 100%, 200% or even 300% of your contributions to help plan for their future retirement needs.
Benefit: For people who have special needs
Ever wish your company provided you with a pension that tells you exactly what your annual pension will be at retirement, similar to the one that teachers get? With certain requirements met, you can actually build your own Individual Pension Plan where the contribution maximums well exceed those of other investment vehicles like RRSPs.
Benefit: A dependable pension plan
When it comes to keeping your cash flow steady and strong, a non-registered account can be just the ticket. Here you can choose from a broad array of investment vehicles to get the accessible money you have on hand working hard for you.
Benefit: Working hard for you
