Where To Save

Where To Save (July 25, 2012)

There are several places where you can set aside money for the future. Here are some guidelines

If you have children under age 17:

• Registered Education Savings Plans (RESP)
• (you receive a government grant equal to 20% of your contribution)

If your taxable income is less than $43,000:

• Tax-Free Savings Account (TFSA)
• (funds withdrawn from a TFSA will not affect future low-income supplements)

If your taxable income is greater than $132,000:

• Registered Retirement Savings Plans (RRSP)
• (you are in the top tax bracket)

Note: All of these plans have limits on the amount that you can contribute.

If you have a mortgage:

• Lump sum mortgage prepayment
• (as long as there will be no prepayment penalties)

If you own a company:

• Open a corporate investment account

Resources:
RESP Information
TFSA Information
RRSP Information