Tax Saving Investments
While a savings plan is about the future, it can also help you make the most of your income right now. Our tax saving investments prepare you for the years ahead and give you more disposable income today. Whether you’re just starting out, thinking about how to pay for your children’s education, getting ready to hang your ‘gone fishing’ sign or you’re already retired, our tax saving investments are designed to help.
REGISTERED RETIREMENT SAVINGS PLANS (RRSP)
There’s more to an RRSP than putting money in and waiting for retirement to cash it out. RRSPs are a great tool for retirement savings, but they also:
- reduce the income tax you pay today
- shelter your income for the future
- can be used to cover a down payment for a home
- can be used to fund your post-secondary education
- allow you to diversify your portfolio
- provide the benefit of compound interest
Features of our RRSP products include terms from 60 days to 7 years, fixed or variable rates and interest calculated daily.
TAX FREE SAVINGS ACCOUNTS (TFSA)
A TFSA makes it possible to bolster your nest egg and save tax dollars at the same time. It is a registered savings plan that allows you to invest your money (the maximum contribution for 2019 is $6,000) and withdraw funds whenever you want, all without paying a penny in taxes on the investment income you earn. TSFAs can also be:
- a savings account, term deposit or Mutual Fund* product
- used to contribute to your spouse/common-law partner’s TFSA, depending on his/her available room
- transferred tax free to a surviving spouse on death
Features of our TFSA products include terms from 60 days to 7 years
REGISTERED EDUCATION SAVINGS PLANS (RESP)
An RESP is one of the best ways to ensure that your children have the funds to go to college or university one day. But it has many other great benefits as well. For example, RESPs:
- offer great tax benefits
- allow you to contribute up to $50,000 per beneficiary
- qualify for additional funds through the Canada Education Savings Grant
- allow interest to accumulate tax-free (although contributions are not tax deductible)
- are transferrable
You can open an RESP for your children, a relative or even for yourself. The beneficiary doesn’t pay tax on any of the money until he/she enters an eligible post-secondary program.
REGISTERED RETIREMENT INVESTMENT FUNDS (RRIF)
During the year you turn 71, all of your RRSP contributions need to be converted into Retirement Income options. One of these options is a RRIF where:
- your funds remain tax sheltered
- you can choose from variable or fixed rate plans
- you still earn a competitive, guaranteed interest rate on your retirement income
- you choose the income frequency and payment amount you receive
- you’re still in control of how your retirement funds are invested
- you can withdraw funds as often as you like, though anything you withdraw is considered income and subject to taxes
LIFE INCOME FUND (LIF)
A LIF is similar to an RRIF in that it allows you to continue enjoying tax-sheltered growth on your investments. With a LIF, you can choose monthly, quarterly, semi-annual or annual payments. Minimum and maximum withdrawal amounts apply and are determined by the age of the plan holder or his/her spouse. Your LIF funds can come from:
- a Locked-in Retirement Account (LIRA)
- an eligible pension plan directly
- another LIF/LRIF under Ontario pension jurisdiction
Mutual funds are not insured by the Deposit Insurance Corporation of Ontario.
Deposits held in registered savings plans are insured separately from the deposits held in other accounts. Eligible deposits in registered accounts have unlimited coverage through the Financial Services Regulatory Authority (FSRA). www.fsrao.ca.
Mutual funds and other securities are offered through Qtrade Advisor, a division of Credential Qtrade Securities Inc.
Mutual funds and securities related financial planning services are offered through Qtrade Asset Management Inc., Member MFDA.