There are of course numerous ways to save for retirement; which one is best depends on your objectives and circumstances. You should use taxed deferred plans when available. These allow your money to compound and grow without taxation.
In Canada, RRSPs (Registered Retirement Savings Plans) contributions within limits, can be deducted from your income, grow taxed deferred and are not taxable until you make withdrawals. TFSAs (Tax Free Savings Accounts) contributions are not deductible, they do however, grow tax deferred, and withdrawals are not taxed. Which one is better depends on your circumstances.
If your employer offers to match your contributions be sure and take advantage of this "free money."
Working with a financial planner will help you determine what plan is best for you. Additional information can be found at www.retirementplanningchecklist.ca
If you have further questions, please do not hesitate to contact me.
Agent Owner, Gilmore Insurance Services, Marysville, Washington State
What are the best ways to save for retirement? Well, when I see this question and I do see it a lot I sort of answer it this way. The best ways to save for retirement is to get into the habit of saving for retirement. There are many ways to save for retirement, there is no best way, there are ways that work best for you, but again the big thing is to do it.
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In Canada, RRSPs (Registered Retirement Savings Plans) contributions within limits, can be deducted from your income, grow taxed deferred and are not taxable until you make withdrawals. TFSAs (Tax Free Savings Accounts) contributions are not deductible, they do however, grow tax deferred, and withdrawals are not taxed. Which one is better depends on your circumstances.
If your employer offers to match your contributions be sure and take advantage of this "free money."
Working with a financial planner will help you determine what plan is best for you. Additional information can be found at www.retirementplanningchecklist.ca
If you have further questions, please do not hesitate to contact me.