Registered Retirement Savings Plan (RRSP) helps you save for the future, while enjoying tax benefits now. By contributing to your RRSP, you can lower your annual income tax and defer paying taxes until retirement.

Investing for retirement and your long-term future, while enjoying a short-term tax break.

Benefits of RRSP : Contributions are tax deductible – Your income is reduced by the amount you contribute to the RRSP and your income tax liability is reduced accordingly based up on your income-tax range.

Savings grow tax free – The income you earn in the RRSP is exempt from income tax as long as the funds remain in the plan. You have to pay tax on the amount you withdraw from the plan as the amount withdrawn is added into your income of that year.

Borrow from your RRSP – Funds can be withdrawn tax free under Home Buyers’ Plan and Lifelong Learning Plan.

Convert your RRSP to get regular payments when you retire – You can transfer your RRSP savings tax free into a RRIF or an annuity when you retire. You’ll pay tax on the regular payments you receive each year but if you’re in a lower tax bracket in retirement, you’ll pay less tax.

Spousal RRSP – If you earn more money than your spouse, you can help build their tax-free savings by contributing to a spousal RRSP. Retirement income will then be split more equally between the couples which may reduce the total amount of tax you pay.

Registered Education Savings Plan (RESP)

Looking to save for your child’s education?
This one’s for you. An RESP is eligible for government grants, plus your investment will grow tax-free until you need to withdraw funds.

Saving for a child’s education costs, including tuition, books, living expenses and more.

RESP is an investment medium used by parents or grandparents to save for their children or grandchildren’s post-secondary education in Canada.

Benefits of RESP :

Tax-sheltered earnings – Your earnings are all tax-sheltered and when withdrawn the earnings are taxed to the child, who may pay little to no taxes on them as students.

Not just for tuition – The money can be used towards more than just tuition costs – including books, living expenses, other course materials and more.

Potential for grants – The federal government add up to a maximum of $500/year with the Canada Education Savings Grant (CESG ), up to a lifetime maximum of $7200 (this is free money).

Flexibility – You can decide how much money should be withdrawn and when it should be withdrawn. The withdrawals can be used for a variety of education costs, including tuition, books and living expenses.

Tax savings – When money is withdrawn and used to pay for the child’s post-secondary education, the plan earnings and government contributions are taxed in the child’s hands. As a student, the child may pay little or no taxes on the money.
If you have decided that an RESP is a wise investment, but you don’t know if you can afford to make the contributions, a licensed advisor at TruePolicy can help. We’ll review your monthly expenses and make the appropriate adjustments to fit the RESP payments into your budget plan. Yes, you got it right we will help you to get RESP with minimum investment to attain maximum benefits / government grants for your child.

Tax Free Savings Account (TFSA)

Tax Free Savings Account (TFSA) is a flexible general-purpose saving medium that allows Canadians residents (age 18 or above) to save for short term and long-term requirements. The income earned in TFSA is tax-free. Withdrawals from a TFSA are also tax-free as contributions are not tax-deductible. That means if you earn $5,000 on your investment, it’s 100% yours to keep without any tax obligation.

Saving tax-free for any length of time and for various goals, such as saving for a home, vacation or a big purchase.

Benefits of TFSA :

Opportunity to earn investment income, tax-free – Any interest, capital gains or dividend income you earn within the account is not subject to tax.

Flexibility to withdraw your savings, tax-free – At any time and for any purpose you choose.

Contribute to a spouse’s TFSA – You can contribute towards your spouse TFSA. But your total contribution to any account cannot exceed the maximum allowed.

Wide range of investment options for enhanced flexibility – Including guaranteed investment certificates (GICs), stocks, bonds etc.

No impact to your government benefits – No income you receive or withdrawals you make from a TFSA will affect your eligibility to receive income-tested benefits such as the Guaranteed Income Supplement, Canada Child Tax Benefit or Old Age Security benefits.