RRSP / TFSA
These two registered ultra-profitable savings plans allow you build your savings tax-free. Here’s an overview of their advantages and differences. Talk to your advisor. We’ll make every effort to guide you.
TFSA: What’s your dream?
Finally, a savings plan that lets you grow! With a TFSA, you earn tax-free savings you can use to realize your dreams, at any stage in life, such as:
- Renovate your house
- Buy a car
- Start a business
- Travel
RRSP: Plan ahead for retirement
We still thank its inventor! An RRSP lets you build your retirement savings tax-free and reduce your taxable income at the same time. For example, we advise this if you want to:
- Set aside money for retirement.
- Buy or build your first home.
- Finance your studies.
However, there are some exceptions. In some cases, a TFSA may be more advantageous than an RRSP for retirement savings. You can also use an RRSP to buy a house, and you can strategically combine the two plans. It can get a little complex, but your UNI advisor is an expert in the field. Why not meet with us?
Regular instalments
Do you have a head full of dreams and ideas? However, you need a way to make them come true. Well here it is! This type of savings involves putting aside an amount each week or month, instead of transferring large amounts at irregular intervals. You build your savings faster, and what’s more, you’ll earn interest. You can even adjust the frequency and amount at any time. Flexibility, we love you!
Here’s an example. Planning a trip in two years? Raise more than $2,500 by putting aside $25 per week. For a clear idea of the possibilities, take a look at the chart below.
| Weekly investment | Length of investment | Capital invested | Accumulated savings* |
|---|---|---|---|
| $10 | 2 years 5 years 10 years |
$1,040 $2,600 $5,210 |
$1,082 $2,872 $6,379 |
| $15 | 2 years 5 years 10 years |
$1,560 $3,900 $7,815 |
$1,623 $4,308 $9,569 |
| $20 | 2 years 5 years 10 years |
$2,080 $5,200 $10,420 |
$2,164 $5,745 $12,759 |
| $25 | 2 years 5 years 10 years |
$2,600 $6,500 $13,025 |
$2,705 $7,181 $15,949 |
Sample calculation at an interest rate of 4%, compounded annually and based on a diversified portfolio. In other words, the numbers don’t lie, whether or not you understand how they work! ;-)
Put on your thinking cap and see how much your savings by regular instalments will be worth.