Registered or Non-Registered Savings?
Red Seal Financial Ltd. is able to offer a variety of investment options in both registered (RRSP, RRIF, RESP, TFSA, etc.) and non registered accounts. Our license enables us to offer GIC's, annuities and segregated funds. We also work with private wealth managers who offer our clients personalized portfolio management.
Following an investor risk tolerance profile, we will recommend options that will help you achieve your investment goals.
What Registered Savings Plan is Right for Me?
There are a number of different types of registered savings plans. The most common are described below. Red Seal Financial Ltd. will help you determine which plan is right for you and help you navigate the administrative process of setting it up right from our office in Edmonton, Alberta. We will then help you determine your savings goal, the amount and timing of your savings deposits and lastly where to invest your savings.
Registered Retirement Savings Plan (RRSP)
An RRSP is a retirement savings plan that you establish, that is registered with the Canada Revenue Agency, and to which you or your spouse or common-law partner contribute. Deductible RRSP contributions can be used to reduce your tax.
Any income you earn in the RRSP is usually exempt from tax as long as the funds remain in the plan; you generally have to pay tax when you receive payments from the plan.
For advice on RRSP's, please contact us.
For more information on the RRSP, visit the Canada Revenue Agency website on RRSP's.
Registered Education Savings Plan (RESP)
A Registered Education Savings Plan (RESP) is an investment vehicle primarily used by parents to save for their children's post-secondary education.
The primary benefits of using an RESP to save for your children's education include access to the Canadian Education Savings Grant (CESG) and the ability to shelter the RESP's growth from taxes until funds are withdrawn.
There's lots to know about RESPs and how they fit into your family's overall financial picture.
For advice on RESP's, please contact us.
For more information on RESP's, please visit the Canada Revenue Agency website on RESP's.
Tax-Free Savings Account (TFSA)
The Tax-Free Savings Account (TFSA) allows Canadians, age 18 and over, to set money aside tax-free throughout their lifetime. Each calendar year, you can contribute up to the TFSA dollar limit for the year, plus any unused TFSA contribution room from the previous year, and the amount you withdrew the year before.
The annual TFSA dollar limit for 2017 is $5,500* and as of the end of 2017, Canadians will have a lifetime contribution limit of $52,000.**
In 2017, the limit will be $5,500 and beginning in 2017, the limit will be indexed to inflation.
All income earned and withdrawals from a TFSA are generally tax-free. Plus, having a TFSA does not impact federal benefits and credits. It's a great way to save for short and long-term goals.
For advice on TFSA's, please contact us.
For more information, visit the Canada Revenue Agency website on TFSA's.
Registered Retirement Income Fund (RRIF)
A RRIF is a fund you establish with a carrier and that is registered with the Canada Revenue Agency. You transfer property to the carrier from an RRSP, RPP, or from another RRIF, and the carrier makes payments to you. Establishing a RRIF can be done at anytime, but must be done no later than the year the annuitant turns 71. Once a RRIF is established, there can be no more contributions made to the plan nor can the plan be terminated except through death.
You can have more than one RRIF and you can have self-directed RRIFs. The rules that apply to self-directed RRIFs are generally the same as those for RRSPs.
For advice on RRIF's, please contact us.
For more information please visit the Canada Revenue Agency's website on RRIF's.