You have worked hard to build your RRSP savings, and now you want to retire and enjoy the fruits of your labor by drawing income from this plan. In order to do so, you will need to convert your RRSP savings into an income plan called a RRIF. This must happen no later than December 31 of the year you turn 71 years old. You can draw income in the form of RRIF payments, as long as you withdraw at least the minimum prescribed amount each year. This percentage starts out low, but then increases as you get older. The nice thing about a RRIF is that for money that you do not withdraw, you can keep it invested in order to generate additional growth on a tax deferred basis. Talk to me today if you are turning 71 at the end of this year, and would like to set up a well balanced RRIF account.

If you are 18+ years old, TFSA’s allow you to invest up to $6,000 per year, and all of the growth in it is completely free of tax! You might be looking to save up enough money to buy your first car or house, pay for a wedding, or even fund a dream vacation. The choice is yours, the choices are endless, and TFSA’s give you the liquidity you need to withdraw the money when you need it. Alternatively, you may wish to complement your RRSP savings program with a TFSA to reach your retirement income goals faster. Let’s talk about ways we can make a TFSA work for you!

For those of us that have children, we all know that the costs of raising them can be extremely high. Even more expensive yet, can be the cost of their post-secondary education! Why not consider using an RESP to help save for those costs? The Canadian Government allows you to contribute a lifetime maximum of $50,000 per child, in which they will match 20% of your contributions annually (up to $500 per year) to a lifetime maximum of $7,200 in the form of what is called the Canada Education Savings Grant (CESG). Additionally, when your child turns 6 years old, the Province of British Columbia will provide your child with a $1,200 B.C. Training and Education Savings Grant (BCTESG). The growth in the plan is tax deferred, and when your child attends a post-secondary institution, the funds are withdrawn in their hands and at their marginal tax rate which is more than likely significantly less than yours. Don’t have the money to get a plan started? Let me help you set up an RESP shell so that you can start contributing when you want to, but also so that you don’t miss out on the BCTESG, which is not dependent on any contributions to the plan!

A non-registered investment plan allows you to meet many of the same savings goals that you hope to accomplish with an RRSP and TFSA; however, the biggest difference is that these plans are not tax deferred, not tax deductible, and are not tax free. Interest or Dividend income is taxed as it is earned, and capital gains are taxed as they are realized. These plans are a good complement to RRSP’s and TFSA’s, and will allow you to continue growing your savings so that you can protect and enjoy life at all it’s stages.