Using RSPs for more than just retirement

Have you ever considered other ways to tap into your registered savings? There are two situations where you can access the money in your RRSP, and while you do have to repay the funds within a given time-frame, these options are not often considered!

The first option is the Home Buyer's Plan. If you're a first-time home buyer, each spouse can withdraw up to $25,000 from their RRSP if they qualify for the plan. The second option is the Lifelong Learning Plan. In order to pay for your education, ou can withdraw $20,000 from your RSP over four years, with a max of $10,000 in one calendar year.

To power of the RSP is that the compound interest is earning you each year that passes as well as the RSP's tax benefits. If you start accessing the finds before retirement, then you end up losing lots of money to taxes, you don't regain that contribution room, and it's only harder to get your RSPs back to where they were.

We're here to help. If you're considering using your RSP for non-retirement purposes, talk with one of our financial advisors for some insight. You can also visit the Government of Canada's website for more information on the Home Buyer's Plan and the Lifelong Learning Plan.

Guide to Rainy Day Savings

Having a emergency funds set aside in the case of job loss, broken property, suprisingly large bills, or unexpected situation or life change. For many of us, having rainy day savings is easier said than done. Don't worry! Here are some tips for you:

1. Set reasonable guidelines and stick to them.
   While it's normaly to be tempted to dip into your emergency savings for an awesome sale at your favourite clothign store, that's not what it's for. Be vigilent, and don't set goals that are unreasonable for your lifestyle.
2. Pay yourself first.
   The best way to succeed at starting an emergency savings is to make sure you pay yourself first. Meaning, make sure that your paying yourself in the form of an investment before you begin paying your mothly living expenses. It removes any temptation to skip a contribution.
3. Out of sight, out of mind.
   Consider setting up a direct deposit or pre-authorized credit into your given savings account. That way, your contributions are consistent, no matter how small the amount is.
4. Put it in the right place.
   Make sure your money is out of reach, but not in a vehicle that will penalize you if you need to withdraw from it. For example, you wouldn't want your emergency monies in a locked term or in an RSP that will tax you for every withdrawal.
5. Take advantage of extra income.
   Contribute any tax refunds or bonuese that come your way. These are funds that you didn't plan for, so you can afford to invest them into your future needs.
6. Take advantage of help.
   At the end of it all, you can turn to us. We can provide you with financial management advice and help you determine your budget. Contact us today to book an appointment with one of our advisors!

East Vancouver, come say hi to us!

We've opened up our newest boutique branch on Commercial Drive and we're excited to be planting roots in this side of town! Come down and say hi to us as we'll be bringing simplified financial services to East Van.