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Registered Savings Solutions
RRSP: Registered Retirement Savings Plans
Since they were established in 1957, RRSPs have been the go-to choice for retirement savings, as they allow you to defer income taxes on contributions. The income tax is deferred and paid when withdrawals from the RRSP account are made, or when the account is converted into a Retirement Income Fund (RIF). Creating a comprehensive financial plan allows us to look for opportunities to pay less tax when withdrawing these funds.
TFSA: Tax Free Savings Accounts
Established in 2009 as a way to encourage Canadians to save, the TFSA provides an attractive option to use as an investment account because there is zero tax on income earned, and zero tax payable when withdrawn. Money withdrawn from a TFSA can be re-contributed to a TFSA the following year, and each year the federal government adds additional contribution room.
RESP: Registered Education Savings Plans
RESP’s can help you save for your child’s future schooling by providing a shelter for tax-free growth and Government incentives, which will ultimately help cover the growing cost of post-secondary education in Canada.
Registered savings plans come with a variety of tax benefits, and underutilized potential which can help you increase your wealth net worth.
Registered savings plans offer a variety of investment options to hold in those accounts to help you build a diversified portfolio. From stocks and bonds to mutual funds and ETFs, our team can help you choose the right investments for your goals and risk tolerance, and to take advantage of these specific accounts. We'll work with you to create a personalized investment strategy that aligns with your financial objectives.
Each type of registered savings plan has limits and rules that can impact your savings strategy. Get help understanding your personal deduction limits and allowable contribution room. we will help you manage and track those contributions.
When it comes time to access your savings, understanding the withdrawal rules and penalties is crucial. Get help strategically withdrawing funds from the registered accounts or making well-timed contributions to maximize your savings potential. At the Watkins Group you will always be able to access your funds when you need them and we will work with you to create a withdrawal strategy that minimizes your tax liability.
Benefits of Working with an Financial Advisor
Working with a Wealth Advisor can keep your goals in sight and offer their hand to help support you and your family in creating a personalized savings plan. Get help navigating the complex world of the Canadian financial system and create a strategy tailored to your unique circumstances. We will work with you to assess your current situation, create a plan, and frequently monitor and report on your progress.
Plan Transfer and Consolidation
Looking to transfer or consolidate your registered accounts? Get in touch and we will guide you through the process to ensure a smooth transition between financial institutions. When transferring accounts to the Watkins Group, we cover all transfer fees associated with the relinquishing institution and make every effort to ensure assets move "in-kind" meaning you stay invested during the process.
Registered Savings Plan Eligibility
Each of the Registered Savings Plans come with their own eligibility criteria. Some of the eligibility criteria include age limits, income requirements, and other eligibility criteria. Get in touch to find out which Registered Plans you are eligible for.
Registered Savings Plan Fees and Costs
There are a few different types of fees and costs you may encounter with a registered savings plan. Depending on your Registered Savings Plan, some of these may apply:
- Administration fees: Maintenance and record keeping fees charged by the financial institution holding your registered savings plan.
- Management fees: If you invest in mutual funds, exchange-traded funds (ETFs), or other managed investments, you may pay a management fee which covers the cost of the professional managing your investment.
- Trading fees: Fees charged when you buy or sell stocks or other investments within your registered savings plan.
- Withdrawal fees: Depending on the type of Registered Savings Plan you have, you may face additional charges if you withdraw funds before retirement.
At the Watkins Group, you don't pay for any of the fees listed above as everything is encompassed into our fee-based Portfolio Partner model. However, other institutions do charge these fees and it's important to understand how these fees and costs add up over time and how they compare to other savings options. While registered savings plans offer unique tax benefits, they may come with higher fees than other savings accounts. However, these fees are often outweighed by the long-term tax savings.
"Thankful that you've helped make my TFSA generate tax-free income, while my friends all have to pay tax on their [RIF] withdrawals - it doesn't seem fair" S.R.