It is never too early to start thinking about your financial security.
Here are five important financial products that will get you on your way to a secure future:
RRSPs are personal retirement plans that are registered with the government to assist and encourage Canadians to save for their retirement.
It is optimal to start your RRSP savings as soon as you begin your working career, however it is never too late to start. Contributions are tax deductible and they grow tax-free inside the RRSP.
2. Tax-Free Savings Account (TFSA)
The TFSA is a flexible, registered, general-purpose savings account that allows Canadians to earn tax-free investment income to more easily meet both long-term and short-term savings needs.
RESPs are government approved plans designed to assist and encourage Canadians to save for post-secondary education.
If you have kids, you can save for your child’s post secondary education tax-free until it’s withdrawn and then it’s taxed in the hands of the child (usually no tax is payable).
Life insurance can help create financial security for you and your family. It is important to have life insurance to support your family in case anything happens to you.
A financial plan that includes life insurance, can mean the difference between leaving your loved ones well-positioned financially and leaving them to cope with debts and an inadequate income.
Disability insurance and critical illness insurance are both types of living benefits Canadians can set up to protect themselves, their families and their financial assets in case of physical hardship.
Disability Insurance insures the beneficiary’s earned income against the risk that a disability creates a barrier for a worker to complete the core functions of their work.
Critical Illness insurance is a product that pays out a tax-free lump sum in the event that someone is diagnosed with a serious life threatening illness.