RRSP
A Registered Retirement Savings Plan (RRSP) is one of the most widely utilized retirement savings accounts in Canada. In addition to facilitating long-term retirement savings, an RRSP provides significant tax advantages. As a registered savings account, contributions made to an RRSP offer two key tax benefits, making it an effective financial planning tool for individuals seeking to optimize their retirement strategy. Reduce your taxable income today. Make withdrawals at a lower tax rate in the future.
TFSA
A Tax-Free Savings Account (TFSA) is a registered investment account designed to help Canadians save while holding a range of qualified investments. Unlike a standard savings account, a TFSA can accommodate various investment options, including mutual funds, segregated funds, insurance-guaranteed investment certificates (GICs), and more.
Unlike a Registered Retirement Savings Plan (RRSP), which is primarily intended for long-term retirement savings, a TFSA offers greater flexibility. It can be used to achieve short-term financial goals, such as purchasing a vehicle or saving for a down payment on a first home.
FHSA
The Tax-Free First Home Savings Account (FHSA) is a registered investment account designed to help Canadian residents save for their first home. Individuals can contribute up to a lifetime maximum of $40,000, with an annual contribution cap of $8,000, to be used toward purchasing a qualifying home in Canada.
Similar to a Tax-Free Savings Account (TFSA), an FHSA can hold a variety of investments, including stocks, mutual funds, guaranteed investment certificates (GICs), and segregated funds. Additionally, any investment growth within the account, as well as withdrawals made for the purchase of an eligible home, are completely tax-free.
