Savings and Investments
Retirement
If your employer doesn’t have a pension plan – not to worry – you can start one on
your own. There is a lot of information out there on retirement planning. The
sooner you start saving the more money you will have when it is time for you to
retire.
Registered Retirement Savings Plan (RRSP). More info can be found here:
https://www.getsmarteraboutmoney.ca/plan-manage/retirement-planning/rrsps/
An RRSP will help you save for your retirement and reduce your taxes while you
save.
5 Reasons to Open an RRSP:
Contributions are tax deductible
Savings grow tax free
You can convert your RRSP to get regular payments when you retire
A spousal RRSP can reduce your combined tax burden
You can borrow from your RRSP to buy your first home or pay for your
education
For more info: http://www.getsmarteraboutmoney.ca/en/managing-your-money/
investing/rrsps-for-retirement/Pages/Five-reasons-to-open-an-RRSP.aspx#
Tax Free Savings Account (TFSA). This is a flexible, registered,
general-purpose savings plan that allows you to earn tax-free investment income.
More info can be found here:
https://www.getsmarteraboutmoney.ca/invest/savings-plans/tfsas/tfsa-basics/
Guaranteed Investment Certificates (GIC). A GIC is an investment that works
like a special kind of deposit. When you buy a GIC you are agreeing to lend the
bank or financial institution your money for a set period of time (the term). You are
guaranteed to get the amount you deposited back at the end of the term. For this
reason, GICs are one of the safest ways to invest.
Each of these options has pros and cons to them. Your financial institution can help
answer any questions you have.
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