The ABCs of saving - TFSAs and RRSPs
Jan 7, 2009
Sun Life Financial offers information on which savings vehicle is right for youTORONTO, Jan. 7 /CNW/ - This year, a new acronym has been added to Canadians' financial vocabulary. The Tax-Free Savings Account (TFSA) adds a new option for Canadians to explore as they concentrate on ensuring their hard earned dollars go further. "Canadians should investigate how TFSAs and RRSPs can fit into their financial plan," says Rocco Taglioni, Vice-President, Individual Wealth, Sun Life Financial Canada. "If you can, I'd recommend taking advantage of both of these savings vehicles. However, every situation is unique so it's important to work with a financial advisor who can help you determine your financial needs and saving goals so you can choose the solutions that work best for you."A TFSA, available through work or through an advisor, may be ideal if you: - Are saving for a big goal, like buying a home. A young couple may find using a TFSA to save for a down payment on a home more tax-efficient than the Home Buyers' Plan. - Want to start an "emergency fund". Unlike an RRSP, a TFSA is not limited to a specific saving goal, so the money can be used for a broad range of needs. - Are using all your RRSP contribution room each year and have additional savings to invest. - Have non-registered savings and want to tax-shelter the investment growth. - Are retired and can no longer make RRSP contributions but still have income to invest. - Want to begin saving now for future health care costs when retired. RRSPs are also an important savings tool for many Canadians: - Many people put money in RRSPs to reduce the amount of income tax they pay. - If you're self-employed, contributing to an RRSP may be the main way you save for retirement, since you probably aren't working at a company that sets up pension plans for its employees. - If you work for a company that offers a group RRSP and employer-matching programs, you can benefit from the employer-matched RRSP contributions. - And for many people, contributing to RRSPs will supplement the retirement income they'll receive from a pension plan, employer-sponsored group RRSP or government pension plans.For straight-forward, easy to understand information on TFSAs, RRSPs and other aspects of financial planning, visit Sun Life Financial's award-winning website www.sunlife.ca/MyFinancialPlan. About Sun Life Financial Sun Life Financial is a leading international financial services organization providing a diverse range of protection and wealth accumulation products and services to individuals and corporate customers. Chartered in 1865, Sun Life Financial and its partners today have operations in key markets worldwide, including Canada, the United States, the United Kingdom, Ireland, Hong Kong, the Philippines, Japan, Indonesia, India, China and Bermuda. As of September 30, 2008, the Sun Life Financial group of companies had total assets under management of CDN$389 billion. Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE) and Philippine (PSE) stock exchanges under ticker symbol SLF.
For further information:
For further information: Krista Wilson, Manager, External Communications, Sun Life Financial Canada, (519) 888-3900 x 4896, krista.wilson@sunlife.com