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As the year 2017 begins, it’s a good time to think about your financial and tax plan and to establish a strategy for your RRSP, TFSA and RESP contributions.

Each of these plans has different characteristics and knowing them will enable you to take full advantage of them.  Here are the key features of these plans:

RRSPTFSARESP
  • Ideal vehicle to save for retirement
  • Contributions deductible from taxable income
  • Investment income taxable only when withdrawn
  • Possibility of making withdrawals (must be added to taxable income)
  • Contribution deadline for the 2016 tax year: March 1, 2017
  • Annual contribution limit of $25,370 in 2016 and $26,010 in 2017
  • Customized solution to save for projects or for retirement
  • Non-taxable investment income
  • Possibility of making non-taxable withdrawals at any time (according to the type of investment)
  • Contribution deadline: December 31, 2017
  • Annual contribution limit of $5,500 for 2017*
  • Accumulation of funds for children’s postsecondary education
  • Savings grow tax free
  • Savings supplemented by government grants
  • Contribution deadline: December 31, 2017
  • Annual contribution limit of $2,500 in 2017 in order to maximize grants

* If you have not made your maximum contributions in the previous years, you may have a cumulative contribution room up to $52,000.

Other early year advice for your personal and professional finances

The Financial’s advisors would like to draw your attention to various subjects which they would be pleased to discuss with you in greater detail should you feel the need. For example:

  • If you have decided to incorporate your practice, you should perhaps consider reviewing your compensation since certain changes will come into effect in this regard this year.
  • In 2017, your retirement will be one year closer and you should take the opportunity to examine whether your risk tolerance and your investment horizon are still the same. You would also be well advised to ensure that your asset allocation is still suited to your situation.
  • If you opted for a strategy that involves lending a sum of money to your spouse or to a trust, remember that you have 30 days from the start of the year to receive the interest payment at the rate initially set out in the loan agreement.
  • Planning to make a major purchase this year? In some cases, it might be preferable to use your cash, while in other circumstances taking out a loan might be the way to go. An analysis of the different options available could prove very beneficial.

Develop your strategy with expert guidance!

Whether you need help planning your RRSP, TFSA and RESP contributions for 2016-2017 or for any other aspect of your personal and professional finances, you can place your trust in one of our advisors.

For an analysis of your situation,
get in touch with one of our advisors