Have you ever thought about taking a sabbatical leave? Are you about to have a baby? Are you in the process of renovating your home?
Whatever your plans, the steps taken to achieve your goals are the same.
One of the benefits to putting your money into investment funds is because they are liquid and offer a strong potential for return.
To withdraw your money, simply ask your advisor to redeem units.
Planning regular instalments allow you to set the amount and frequency of the amounts to be invested and may be modified at any time.
The amount is drawn directly from your account and transferred into your investment fund portfolio, where they are used to acquire new units.
As it involves spreading out your investment over time, this technique has a balancing effect, mitigating market downturns while allowing you to benefit from market upturns.
If you would like to purchase property or return to school, you are entitled to make tax free withdrawals from your RRSP.
It’s like having an interest free loan.
|Buying a House||Returning to Studies|
|Investment Plan||Home Buyers’ Plan (HBP)||Lifelong Learning Plan (LLP)|
or $70,000 per couple
($10,000 per year)
|Repayment Deadline||15 years||10 years|
Under the HBP, the repayment deadline is calculated starting on the second year following retirement.
As for the LLP, repayment is calculated from the earlier of the two following:
If you open a RESP for a beneficiary who has chosen not to pursue higher education, you have the option of designating yourself as beneficiary, thereby financing your own return to school.
Whether planning a budget, setting your savings targets, or choosing investments, you can count on the expertise of your advisor every step of the way.