Planning for your financial future can often seem overwhelming and perplexing. With several types of investment options, it can be difficult to choose which is right for you. Whether you’re planning for your retirement or wanting to send your children to college, opening an investment account can help you to save money and relieve financial stress down the line. As an accredited financial advisor I’m here to help guide you through all your investment options to find the right solution to achieve your financial goals.
Darren Robinson offers a number of investment services and resources to the Barrie, Ontario and surrounding area. To learn more about any of the investment topics listed, click the links below.
RRSPs
By definition, an RRSP, or a Registered Retirement Savings Plan is a type of Canadian account put into place for the specific purpose of holding savings and investment assets to be cashed out upon retirement to subsidize income. While RRSPs not only help you save for your golden years, they also have several major tax benefits. For example, contributions to your RRSP fund can be deducted from your income tax each year you contribute to it. Also, your savings are tax sheltered, meaning that while you save towards retirement, your RRSP funds will not be taxed. However, they are taxed upon withdrawal. Thus, having a plan in place to minimize your taxation when you do retire is a must.
RESPs
College and universities can be an expensive endeavour for your child, so it is beneficial to plan early using an RESP, or a Registered Education Savings Plan. Essentially, an RESP is an investment account parents use to save for post-secondary education in Canada. In addition to your savings, the federal government can add to your savings with grants. The savings accumulated are also tax-deferred until withdrawal when the child turns 17. If you missed contributing to an RESP, you can still catch-up on past contributions and grants for your child’s future.
TFSAs
In Canada, we offer TFSAs, also known as Tax-Free Savings Accounts. Essentially, a TFSA is a savings account that provides tax benefits to the investor. Unlike other registered tax-deferred plans, earnings put towards your investment income, including capital gains and dividends earned in a TFSA are not taxed, even when withdrawn. The major plus to this type of investment is that you can add and withdraw at any time without penalty.
Annuities
With your life insurance policy comes the opportunity for annuities. Typically used for retirement income, you make an annuity by depositing a lump sum of money. This is in exchange for agreeance to pay you an income for a set period of time, or for the rest of your life. You can purchase annuities using your RRSP, RRIF or a non-registered account. You will get the money back later with interest in the form of regular payments, at the frequency of your choice; monthly, quarterly or annually.
Financially planning for the future doesn’t have to be scary or overwhelming. By opening and adding to investment accounts you can ensure your family’s futures, your children’s education and even your retirement have sound financial coverage when the time comes. If you have any questions about opening an investment account or if you would like to review your investments to know if there are any options you could be taking advantage of, don’t hesitate to give me a call at 705-315-0516. I am always happy to help you better understand your investments to build a solid financial foundation for the future.
