RRSP (Registered Retirement Savings Plan)

An RRSP is a tax-advantaged account designed to help Canadians save for retirement. Contributions are tax-deductible, and investment growth is tax-deferred until withdrawal, providing an excellent way to build retirement savings while reducing taxable income.

TFSA (Tax-Free Savings Account)

The TFSA allows Canadians to save and invest money tax-free. Earnings from investments like interest, dividends, and capital gains are not taxed, and withdrawals are tax-free, making it a flexible and effective savings tool.

RESP (Registered Education Savings Plan)

RESPs are designed to save for a child’s post-secondary education. Contributions grow tax-free, and the government provides grants to boost savings. Withdrawals for education expenses are taxed in the student’s name, typically at a lower rate.

RRIF (Registered Retirement Income Fund)

An RRIF is a continuation of an RRSP, designed to provide income during retirement. It allows tax-deferred growth but requires minimum annual withdrawals, which are taxed as income. It’s a crucial tool for managing retirement funds.

FHSA (First Home Savings Account)

The FHSA helps Canadians save for their first home. Contributions are tax-deductible, and withdrawals for purchasing a home are tax-free. It combines the benefits of an RRSP and TFSA, making homeownership more accessible.

Annuities

Annuities provide guaranteed income for life or a set period, offering financial stability during retirement. Purchased with a lump sum, they are a reliable way to convert savings into regular, predictable income.