Montreal Savings & Retirement Services

RRSP

Registered Retirement Savings Plan (RRSP)

In addition to allowing you to save for retirement, a registered retirement savings plan (RRSP) can also be used to pay for a first home (HBP) or to fund further education (LLP). An RRSP provides a dual tax benefit. First off, the investment capital is tax deductible. As a result, you can reduce your tax burden by deducting your contributions from your yearly income. Second, your RRSP savings are tax-free as long as you don't take any distributions.

Tax-Free Savings Account (TFSA)

For medium- or long-term saving initiatives, a tax-free savings account is the best choice. Even if you take a withdrawal, the returns created in the account are not taxed. Additionally, it is always accessible, making it a great option for an emergency fund.

LIRA

TFSA

IPP

Locked-In Retirement Account (LIRA)

A LIRA enables you to transfer the assets accrued under a retirement savings plan or your ex-pension employer's plan to an individual plan in the event that you quit your employment or are fired. You can invest this money with the aid of a financial expert and have more control over your investments.

Individual Pension Plan (IPP)

The individual pension plan (IPP) is a defined benefit pension plan that is registered with both the provincial authorities, where necessary, and the Canada Revenue Agency (CRA). "Defined benefit" denotes that the pension amount was predetermined at the time the plan was founded using a defined formula. For each year of service that is recognised, this formula equals 2% of the sum of the best three annual incomes that are adjusted to retirement. The resulting sum is restricted to the CRA's upper limit. An IPP typically generates more retirement income than a registered retirement savings plan does (RRSP).

Non-Registered Savings Plan

If you want to continue saving for a project or your retirement but are at your RRSP and TFSA contribution limits, a non-registered savings plan is for you. Compared to a bank account, you will earn a better rate of return and have the option of investing your money in mutual funds. All of the available investment alternatives can be explained by a financial counselor.

NRSP

Registered Retirement Income Fund (RRIF)

An extension of a registered retirement savings plan is an RRIF. It enables you to make use of the funds that you have built up over the course of your working life. To convert the funds you have invested in your RRSP into an RRIF, you have until December 31 of the year you turn 71

RRIF

Life Income Fund (LIF)

A life income fund (LIF) will enable you to periodically withdraw the money you need to live comfortably if your savings are in a locked-in retirement account (LIRA).

A senior couple playing music and dancing

Annuities

LIF

Annuities

If you want to turn a portion of your money into a fixed, guaranteed income that gives you regular payments, annuities are the best option. Life and certain annuities are the two types available.

RESP

Registered Education Savings Plan (RESP)

By making contributions to your child's Registered Education Savings Plan (RESP) and taking advantage of generous government grants, you start saving early. Regular donations from you and grants from the government together produce returns. Your Registered Education Savings Plan (RESP) gains growth without paying taxes.

Your contributions are returned to you to help pay for your child's education. The grants and total return from the Registered Education Savings Plan go to your child (RESP).