Canadian motorists across the country are commuting with smiles on their face as gasoline prices help put a break on their pocketbooks and there’s more good news: prices are expected to slide even lower. With the current average savings on gasoline, Canadian families have many options to turn those savings into even bigger savings by contributing to an RRSP and opening a TFSA.
An RRSP is a retirement savings plan that you establish and register so you, your spouse or commonlaw partner can contribute. Deductible RRSP contributions can be used to reduce your tax.
The Tax-Free Savings Account (TFSA) is an account that provides tax benefits for saving in Canada. Investment income, including capital gains and dividends, earned in a TFSA are not taxed, even when withdrawn.
Saving money is a crucial step in building a prosperous and secure future, especially for ones family. However, choosing how to handle the savings is sometimes an overlooked step that can hinder the growth of the savings. It is really important to get the right information you need from trusted financial advisors. Contact BP TAX today!