South Coast Financial Services
We care about your financial self defence ... shouldn't you?
Dear Visitor,It’s almost spring time and we will soon be in the warmth of summer!
We just finished the “RRSP Season” when we had the ability to top up our RRSP contributions to reduce our 2021 taxable income. Many of us did that and we may get an income tax return. So what do can we do with that tax return:
All of these are valid especially paying off debt to avoid paying interest rates. We want to stay out of debt as much as possible! Point 2 is also important especially with what we have been going through with the pandemic.
For point’s 3 and 4 it is good to invest for the future, maybe you don’t want to put the whole return into an investment but it will grow and help you with your future plans.
So let’s look at the TFSA in more detail:
If you have non-registered investments another good idea would be to top up your TFSA after finding how much contribution room you have. Growth of funds in a non-registered account are subject to capital gains tax where as in a TFSA there is no capital gains tax. Yes you may have to pay some gains tax on the move to the TFSA but you would be avoiding future capital gains tax on the growth if it stayed in the non-registered account.
Many people think that the TFSA must be setup with a bank and many of those people who do end up putting it into a savings account with the bank. Well this may not be your best option often times the interest gains with the bank are less than the inflation rate.
I can help you with setting up your TFSA in a segregated fund investment. Segregated funds are similar to mutual funds however they have several guarantees.
If you would like to setup or manage your TFSA with us contact me and I will help you get it established and explain all the details to you.
Investing for the Future
Should you desire more information in any of these areas contact us, our contact information is below and we would be glad to setup a time where we can sit down and discuss things with you.
Also make sure you book your appointment for your complimentary, comprehensive and confidential Financial Goals Analysis. The analysis can lead you and your family to your financial goals and dreams!