How to Diversify your Savings
RRSPs
Take Charge!
Go Global
TFSAs
If you’re ready to learn more about how to make the most of your hard earned money, HSBC has the tools and expertise to help pave the way to financial freedom.
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Funds contributed during the first 60 days of the calendar year (March 1 deadline in 2019) can be deducted from the previous year’s income.
You may therefore pay less tax! With the magic of compound interest, the earlier you invest, the more time your money will have to work for you. RRSPs are in it with you for the long haul.
It’s “RRSP season” right now – the best time to rev up your planned retirement savings!
It’s always TFSA season!
What you might not know: Investment income and capital gains earned in a TFSA are not subject to Canadian tax. There are annual contribution limits, but unused TFSA contribution room can be carried forward indefinitely and withdrawals are not taxable and may be re-contributed the following year (some restrictions may apply).
It’s not just a place to park your spare cash: GICs, bonds, stocks and mutual funds can be purchased inside a TFSA to help your money grow.
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TFSAs are an excellent option for small-business owners. The contributions are not tax-deductible, but investment income earned in the account is tax free; Unused contribution room can be carried forward and accrue over the years.
Back
TFSAs came into effect in 2009, and with contribution room rolling forward,
if you were 18-plus and a Canadian resident for all eligible years, as of
Jan. 1, 2019, the total cumulative room available is $63,500. A great opportunity for Gen-Xers and younger Boomers.
With both savings vehicles, it may be best to think global. Why go global?
Geographical diversification can play a role in reducing risk in an investment portfolio and may help to increase returns potential.
A portfolio made up of a variety of investments from different geographical regions can help investors avoid the ups and downs of a single economic region and insulate against extreme market movements compared to a less-diversified portfolio in the long run. The experts at HSBC can recommend a globally-diversified investment portfolio best suited to your individual needs, goals and risk tolerance.
Remember, smart investing
means diversifying your funds
in order to maximize returns.
Outside of lump-sum deposits, whether you have a little to invest each week/bi-weekly/month – remember to pay yourself first.
Set up a pre-authorized contribution plan and invest regularly in your RRSP and TFSA account to lay the foundation for a solid retirement.
Disclaimer +
It should be noted that these tips are for informational purposes only, are subject to change without notice, and are not intended to provide specific financial, investment, tax, legal or accounting advice to you, and should not be relied upon in that regard. You should not act or rely on the information without seeking your own financial, investment, tax, legal or accounting advice.
Growing your investments now means you can save for what you really want later.