To start, an obvious one, pay down debt. If there is an existing mortgage or other debt, it would make sense at this point to take the extra cash flow to pay it down. Even though interest rates are relatively low right now, it’s a guaranteed after-tax return, and rates will likely...
Tax-free growth.You pay no tax on any investment income you may earn in your TFSA and you can hold a variety of qualified investments, including cash, stocks,guaranteed investment certificatesandmutual funds. The higher the return potential on your investments, the faster your savings may grow,...
From a paper trail perspective, the beneficiary will need to report the RRSP assets on their tax return, but the beneficiary will receive a tax deduction to offset the taxes owed. Another benefit of having a qualified beneficiary is that itavoids estate probate tax, which can add up! Will a...