It is important to understand the difference between Registered Retirement Savings Plans (RRSPs), Tax-Free Savings Accounts (TFSAs), and Registered Education Savings Plans (RESPs).
A RRSP is a good strategy for saving for your retirement, especially if your tax bracket is higher now than you expect in retirement. A TFSA is a good strategy to supplement your RRSP, or just save for yourself for a future use, or simply build a tax-free asset for your estate. A RESP is an excellent strategy to save for your child’s post-secondary education, as you get a 20% increase* in contributions due to the federal grant funds. *limitations apply
Determining which savings plan or combination of savings plan is best depends on your personal situation and objectives. It is important to understand eligibility, withdrawals, estate considerations and contribution limits, benefits and period. Read more about each of the different options below.
Contact Gareth Whiteside of Ford Keast Wealth Management if you have questions related to the above.