June 30, 2022 at 10:10 pm #325580
Tax free saving accounts (TFSA) / Experior Financial Group
Investing in your retirement plan will save taxes, and the amount saved from taxes can be used to repay part of the mortgage loan. This classic technique is especially relevant in the period before increasing inflation. Investors with an average level of risk contribute money to the RRSP, and the tax refund is used to repay the mortgage. Riskier investors do not invest tax refunds in mortgages, but buy investment funds. Both a Tax-free Saving Account (TFSA) and a regular investment account are suitable for this.
Tax free saving accounts (TFSA) / Experior Financial Group https://experiorfinancial.com/tax-free-savings-account/
A tax-free account (TFSA) allows any Canadian resident over the age of 18 to set aside five thousand each year, the income from investing which is not taxed. If you didn’t have time this year, then next year you can invest ten thousand. If you are going to use this money in the near future, it is better to withdraw money from the TFSA this year. Then the amount taken this year can be invested again together with the next five thousand next year. If you need to choose which plan to put money into: RRSP or TFSA, follow a simple rule: with a high level of income and taxes, RRSP is more profitable. At the same time, if you need to withdraw money from the RRSP in the near future during times of paying high taxes, it is better not to invest anything there.
By the way, many people still mistakenly think that in TSFA money is stored only on the “saving account”. It is correct to use such an account for all permitted types of investment products.
If you are not sure where exactly to invest your savings and how to plan your budget correctly, contact an independent financial advisor. Unlike a bank, no one dictates to an independent consultant “from above” which investments to recommend to clients, and his choice is ten times greater than what the bank can offer.
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