A financial planner will be able to connect all of the financial dots in order to provide you with an overall plan to meet your financial goals. They should have training and experience in all kinds of financial products and financial aspects of your investments, insurance, taxes, and estate planning in order to make the right recommendations for your personal situation. A financial planner can also save you thousands of dollars in tax deductions by looking at your your portfolio from an unbiased approach.

Congratulations! You decision to start saving money many not only help you achieve your goals, it can help create healthy financial habits that last a life time. 

RRSP:

• Any contributions made to the RRSP give you an upfront tax benefit. You will get a tax receipt for the contributions made and it offset your annual taxable income. 

• Money grows tax free in an RRSP, so there is no tax Implications for interest earned in the RRSP. 

  • Any loss in the investment can not be written off in your taxes. 

• Income tax is charged when you withdraw from an RRSP at a later date. 

  • RRSP are designed to allow you to withdraw money in your retirement years, where you will likely pay lower taxes as your annual income may be less than when you were working. 

• No minimum age to start contributions, you just need to be earning income. 

• Max age to contribution is 71 years old. 

  • Must convert your RRSP into an income annuity or a RRIF by Dec 31 of the year you turn 71

• Max limit changes based on your income and CRA rules follow the link below to see the chart. 

  • CRA RRSP Limits 

  • Unused room can be carried forward into the current year. 

• You can get a RRSP loan to catch up on missed contributions from the previous years

  • The interest paid on the loan can will not be eligible for a tax right off. 

• You can contribute to a spousal RRSP

• Withdrawals without tax implication is also possible through; 

  • Home Buyers Plan

    • Any amount taken must be re-contributed usually with in 15 years, payment start the second year after you withdrew funds. However, you can repay the entire amount anytime.  

  • Lifelong learning plan

    • You can withdraw up to $10,000 per calendar year, a total of $20,000. If you withdraw more than the annual or total LLP limit. The excess will be included in your income from the year you exceed the LLP limit. Must be re-contributed with in 10 years, generally 10% of the withdrawal is due each year until the full amount is paid back. 

TFSA:

• You don't get a tax benefit for contribution to an TFSA account. 

• Money grows tax free in an TFSA, so there is no tax Implications for interest earned in the TFSA. 

  • Any loss in the investment can not be written off in your taxes. 

• No tax implication when you withdraw your money from a TFSA account 

• You must be 18 or older to start contribution to a TFSA and have a valid social insurance number and be a resident of Canada to open a TFSA

  • You can put money in each year regardless of your age. 

• Max limit changes year to year follow the link below to see the chart. 

  • Canada Revenue Agency TFSA contribution room 

  • Unused room can be carried forward into the current year. 

• Withdraw

  • if you take money out you can add this money back to the account in the future (usually the following calendar year). 

  • no obligation to re-contribute

The soon you start contributions to an RRSP and/or TFSA, the greater the growth potential. Your tree has more time to grow.

Protect what matters most, not just your house. 

The questions you should ask:

1. 1. Who receives the money?

   2. What is my coverage like?

   3. What choices do I have?

   4. Who controls the policy?

   5. What happens when I pay off my mortgage?

Mortgage Insurance:

1. Money goes to the lender, and can only be used to pay down your mortgage

2. Typically only covered for the mortgage. The amount of coverage decreases as your mortgage is paid down, however, the monthly premium payments do not decrease. 

3. Generally, very limited options. Example: Mortgage life insure only lasts until you've paid off your mortgage or until you renew and move to a new lender, then the process starts all over again. 

4. The lender typically owns the policy so you cant move your mortgage insurance to another lender. 

5. Your insurance coverage ends. 

Individual Insurance: 

1. Money goes to whomever you choose, perhaps your family - they can decide how the money is used. 

2. Choose how long you want your coverage to last - shot-term or for a lifetime. Your coverage stays the same as you pay down your mortgage. 

3. You have many choices. You can pick between several types of insurance: life insurance, critical illness insurance and disability insurance. You can get them all or just get what your budget allows. 

4. You own the policy and have 100% control. It's unrelate to your mortgage, so it doesn't matter if you move your mortgage to a different lender or institution. 

5. Your insurance isn't tied to your mortgage, so your coverage stays with you. You may have options to adapt the coverage to meet evolving needs. 

Insurance is about more than just your home, it is about protecting what is important in your life. That is why individual insurance may better suit your needs. 

Term insurance:

• Term life insurance guarantees payments of a stated death benefit if the policyholder dies within the stated term period. Term periods may last anywhere from 1 year to 30 years. Term life insurance policies do not possess monetary value unless the holder dies within the term. However, term life insurance may be less costly than other permanent life insurance options.

Permanent insurance:

• Permanent life insurance refers to a set of life insurance policies that provide coverage over your entire lifespan, so long as premiums are continued to be paid. Whether you pass away immediately after purchasing coverage or 50 years later, your beneficiaries would receive a death benefit.