We offer just about every type of account available in Canada. Here is a brief description of the types of accounts you can open:
- RRSP: A registered retirement savings plan (RRSP) is an account designed to help Canadians save for retirement. While the investments are held in your RRSP, you won’t have to pay tax on any interest, dividends, or capital gains you earn. There is a limited amount you can contribute to an RRSP every year.
- Spousal RRSP: A spousal registered retirement savings plan (Spousal RRSP) is often used to lighten the tax load for couples with big income disparity, as it avoids a higher-income earner from having a large pile of retirement savings in their RRSP while the lower-income earner has a small pile. The limit to the amount you can contribute to an RRSP remains the same even if you have an RRSP and a Spousal RRSP to contribute to!
- TFSA: A tax-free savings account (TFSA) encourages long-term saving by providing tax benefits: any income earned in a TFSA is tax-free, even when you withdraw it. There's a limit to how much you can contribute each year.
- Non-Registered Account: A personal (or joint) account in which you can contribute as much, or as little, as you like. All the interest, dividends, and capital gains earned in a non-registered account will have tax considerations. You would most likely have this type of account once you've maximized the contribution room in your RRSP and TFSA.
- Save: A savings account with interest that compounds monthly.
- RESP: A Registered Education Savings Plan can be used to save for a child's education. You can contribute a lifetime maximum of $50,000 per child, and the government will match a certain amount.
- RRIF: Your RRSP must be converted into a Registered Retirement Income Fund (RRIF) by the end of the year you turn 71.
- LIRA: You would have a Locked In Retirement Account (LIRA) if you have a pension from a former employer but are not retired. You can't contribute to a LIRA, but you do have control over the investments in your account.
- Corporate: A corporate investment is opened under your business's name and, much like a personal account, allows your business to invest money so it can grow.
If you're not sure which account is right for you, we can help - email us.