Save and Grow Your Wealth with RRSP and TFSA
In Canada, if you are a permanent citizen or Canadian resident then you are eligible to open different types of savings accounts that are registered with the Canadian government. This initiative is taken by the Canadian government to inculcate the habit of savings among Canadians. Apart from savings, these accounts offer other benefits that help your savings grow with time. Different registered accounts serve a different purpose. Depending on your financial goals you can opt for a suitable option.
Gujarat Insurance specializes in managing different types of registered accounts and helps you maximize you’re your earnings on the contribution you are making. We suggest you most suitable amount to invest depending on your short-term and long-term financial goals. To get our expert’s advice, call or mail us anytime.
Different types of registered account options that you can open to start savings are available like PPSP, TFSA and RESP. These all are savings accounts serving a different purposes and offering different benefits.
Registered Retirement Savings Plan (RRSP)
Canadian Government introduced RRSP in the year 1957. As the name suggests RRSP is a savings account that helps you save especially for your life after retirement. The plan offers several features that will help you grow your wealth while you save. If you have plans and want to be financially independent after retirement, RRSP is one of the best savings plans for you.
There are certain eligibility criteria that you have to fulfil to open an RRSP account and they are:
- You have to be a permanent citizen of Canada or a Canadian resident.
- You must be in between 18 to 71 years of age.
- You must pay income tax.
- If you are working for a company or running your own business.
- Even if you are below 18 but have a consent letter from your parents or local guardians.
There are different ways in which you can open an RRSP account. You can go for:
- Individual RRSP account.
- You open an RRSP account with your spouse or legal partner.
- Your employer opens group RRSP accounts for their employees.
You can go for the most suitable way that suits you the best and help you avail maximum RRSP benefits. Along Different RRSP accounts offer different benefits. Financial advisors at Gujarat Insurance have years of experience and will guide you throughout the process irrespective o what type of RRSP account you are opening or want to go for an individual plan or group plan.
It can be confusing what type of RRSP plan you must go for. Don’t get confused, financial advisors at Gujarat Financial are always available to address your queries and give you suitable solutions. Our team is by your side throughout the process and assists you at every step from selecting the most suitable RRSP plans depending on your financial goals and the amount to want to save.
Want to start RRSP, Call us for a free consultation!
Advantages of Opening an RRSP Account
- The contribution you make to an RRSP account are tax-exempted.
- You can invest RRSP savings using different investment vehicles and grow your savings.
- No tax is charged on the earnings you make through investments.
- It is possible to withdraw an amount from an RRSP account without paying any taxes if you need it for buying your first house or if either you or your life partner is resuming your studies through a government program.
- It is possible to withdraw an amount from your RRSP account anytime.
Tax-Free Savings Account (TFSA)
Apart from RRSP, TFSA is also a registered savings account that helps you save and also save on taxes. Canadian Government started TFSA in 2009. You can open a TFSA if you are over 18 years and are a permanent citizen of Canada or a Canadian resident. If you do not have permanent citizenship or Canadian residency, you can still open a TFSA in Canada with the help of a valid SIN number. There is no upper age band when it comes to TFSA.
Advantages of TFSA
- The contributions you make in TFSA will not be counted while you file your taxes.
- Tax-free earnings you make from your TFSA contribution.
- In case you borrow money to contribute to your TFSA account then interest will not be charged on the amount you borrowed.
- It is possible to open more than one TFSA account.
- A non-resident can also open a TFSA account in Canada by paying a 1% tax every month till you are contributing to your TFSA account.
There are different ways of starting a TFSA account. You can open a TFSA account in the form of a Deposit or an Annuity Contract or a Trust Agreement. It entirely depends upon you in which form you want to open the account. Gujarat Insurance specializes in different financial services. We have a team of experts who are handling several TFSA accounts and will make sure you earn the maximum out of your investment.
Opening a TFSA account is easy and you do not have to submit several documents. As soon as the account is active you can start contributing. The next step is to start investing your contribution. There are different investment tools available that will help you earn on your savings. You can choose a suitable option depending on your financial goals as well as your risk-taking ability. Financial experts at Gujarat Insurance will guide you and will suggest the most profitable option depending on your financial condition, budget and your past investments.
Different Types of TFSA and RRSP Investments
You can choose from different types of RRSP and TFSA investments depending on your financial goal and investment profile. You must explore different types of plans before opening a registered account.
- Guaranteed Investment Certificates (GIC):
- Market-Linked Guaranteed Investments (MLGIs):
- Mutual Fund:
This is one of the safest types of investment. GICs make sure that your capital amount and the interest you have earned is safe and that the fluctuations in market condition do not impact them.
This type of investment offers both options i.e. your capital will be safe while earnings you will make will be variable and will vary depending upon the market condition.
It is a risky type of investment and gets impacted by market conditions. You can take professional assistance in case you do not have experience with mutual funds and want to increase your earnings and reduce risk. You have to invest in a selected mutual fund and your earnings will depend on market conditions.
Gujarat Insurance has a team of experienced financial advisors who are well-versed in the market and can give you the right advice on where to invest and when. Our team is always there to assist you. If you are interested in RRSP or TFSA, get in touch with experts.