Borrowing is good - Saving is better

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.

Key Factors

1. Cost: The total amount you will need
2. Time frame: Your ideal deadline
3. Means: How much you can save without sacrificing a balanced budget

Suitable Investments

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.

Regular Instalments

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.

Dipping into Registered Savings

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.

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:

• Five years after your first withdrawal
• Two years after the last year you indicated you were entitled to the education amount on your federal tax return

Become the Beneficiary of your RESP

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.