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You can open an investment account that will allow you to buy, sell, and hold investments. You may have also heard of Registered Retirement Savings Plans, Tax-Free Savings Accounts, and Registered Education Savings Plans. Each of these...
Read moreYou can open an investment account that will allow you to buy, sell, and hold investments.
You may have also heard of Registered Retirement Savings Plans, Tax-Free Savings Accounts, and Registered Education Savings Plans.
Each of these specialized accounts allow you to hold investments, and have certain requirements that you need to know about.
Let’s take a brief look at each one of these accounts.
Investment accounts hold cash and investments, such as stocks, bonds, and mutual funds, that you can buy and sell to achieve your financial goals. You are taxed on your gains.
RRSPs are registered accounts that allow you to shelter your investment earnings and defer taxes until you begin to make withdrawals in your retirement years.
TFSAs are registered accounts that allow you to set specified amounts of tax-free money aside each year throughout life.
RESPs are registered accounts that allow you to save for your child’s post-secondary education, and you may qualify for various government incentives.
RRSP, TFSA, and RESP accounts also allow you to hold investments, not just cash.
Over time, you may find yourself using more than one of these accounts. It will depend on your financial goals and needs.
A registered investment professional can help you open, manage, and understand these accounts.
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