Registered Saving Plans
What is an RDSP?
A Registered Disability Savings Plan (RDSP) helps parents and others save for the long-term financial security of a person who is eligible for the Disability Tax Credit.
What are the Benefits of an RDSP?
Contributions to an RDSP are not tax deductible and can be made until the end of the year in which the beneficiary turns 59. Contributions that are withdrawn are not included in income for the beneficiary when they are paid out of an RDSP. However, the Canada Disability Savings Grant, the Canada Disability Savings Bond, and investment income earned in the plan are included in the beneficiary's income for tax purposes when they are paid out of the RDSP.
What is an RESP?
A Registered Education Savings Plan (RESP) is an education investment plan that allows you, as the subscriber, to accumulate money in an investment portfolio for a child's post-secondary education. The withdrawals can be used towards the child's tuition, textbooks and living expenses at a qualified post-secondary institution.
Higher education is quickly becoming an expensive necessity for a child's future success. Parents and grandparents want the best for their children's future; however, this takes long-term planning and preparation. Contributing to a child's RESP is an excellent way to save for their post-secondary education and allows you to access government grants available such as Canada Education Savings Grant and Canada Learning Bond.
What are the Benefits of an RESP?
An RESP allows the subscriber's contributions to grow and earn income by compounding in a tax-sheltered environment until withdrawn.
The Canada Education Savings Grant (CESG) is available to a yearly maximum of $500 on a $2500 contribution; this is an extra 20% just for making a contribution. You may be eligible for additional CESG† based on your family income.
Your beneficiary may receive Canada Learning Bond (CLB) depending on family income. An initial CLB payment of $500, plus $100 each year until the beneficiary turns 15,† is paid to a beneficiary born after December 31, 2003.
† Additional CESG and CLB subject to certain eligibility requirements.
What is a RRIF?
Registered Retirement Income Funds (RRIFs) are a flexible tax-deferring vehicle that members can transfer their registered funds (usually RRSPs) into in order to provide regular income. If not before, by December 31st of the year you turn 71, you must transfer your Registered Retirement Savings Plan to a RRIF.
RRIFs can be deposited into mutual funds and GICs.
Kindred has a range of RRIF investment options that give you both stability and growth. To learn more about RRIFs, call or visit your local branch today and speak with a member of our Investment team .
What is an RRSP?A Registered Retirement Savings Plan (RRSP) is an investment account that allows you to save money for your retirement while lowering your income tax. Contributions are deducted from your annual income to reduce the amount of income tax you must pay for that year. Each year there is a limit to the amount you may contribute to your RRSP. This amount can be found on your notice of assessment issued by Canada Revenue Agency.
RRSPs can be invested in a mutual fund, GIC or index-linked term deposit.
Kindred has a range of RRSP investment options that give you both stability and growth. Speak with a member of our Investment Team today to develop an investment strategy that works for your life.
Pre-Authorized Contribution Plans (PAC)With a Pre-Authorized Contribution (PAC) plan, you can pre-authorize Kindred to take a set amount of money from a designated Kindred account each month and invest it as conservatively or aggressively as you choose. A member of our Investment Team can arrange this at your request and help you determine what type of RRSP investment works best for you. With a PAC plan, you gain the benefit of investing early in the year and collecting interest on that money for a longer period. You’ll be surprised to see how much of a difference this makes over time.
If you haven't been making the maximum allowable contribution to your RRSP each year since 1991, you probably have unused room in your contribution limit. To begin catching up, meet with a member of our Investment Team and arrange for an RRSP loan. Your catch-up RRSP contribution may result in an additional tax refund that you can use to pay down your RRSP loan.
Home Buyers' Plan (HBP)
The Home Buyers' Plan is a program that allows you to withdraw funds from your registered retirement savings plan (RRSP) to buy or build a qualifying home for yourself or for a related person with a disability.
Lifelong Learning Plan (LLP)
The Lifelong Learning Plan allows you to withdraw amounts from your RRSPs to finance full-time training or education for you or your spouse.
To learn more about the Home Buyers’ Plan or the Lifelong Learning Plan, call or visit your local branch today and speak with a member of our Investment team. Additional details are also available on the Canada Revenue Agency site by clicking on the links below.
*Mutual funds and securities related financial planning services are offered through Qtrade Asset Management Inc., Member MFDA.
Securities and securities related financial planning services are offered through Qtrade Advisor, a division of Qtrade Securities Inc., Member of the Canadian Investor Protection Fund.
Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.