Most immigrants come to Canada for better opportunities. It could be for work, study or overall better living conditions, whichever it is, we know you are interested in making the system work for you just like it has worked for other immigrants.
The first step towards saving and investing is to have a bank account with your preferred institution, only then can you consider the following savings plans and investment options:
- Tax-Free Savings Account (TFSA)
- Registered Retirement Savings Plan (RRSP)
- Registered Education Savings Plan (RESP)
Tax-Free Savings Account (TFSA)
Whether you want to save for a couple of years as an emergency fund, for a house renovation, or a car, a savings plan that its investment earnings and withdrawals are tax-free is a good choice. There is no barrier to who is eligible to own this account as long as they are legal immigrants and own a valid Social Insurance Number (SIN). The annual contribution limits/room is subject to change however, for 2022, the contribution limit is $6,000. Regardless, the total amount you can put into your TFSA may be much bigger if you’ve yet to open your TFSA since you turned 18 or totally used up your contribution limits from the previous years.
Registered Retirement Savings Plan (RRSP)
A Registered Retirement Savings Plan is a great opportunity to set money aside while still working. It will come in handy when you retire. This savings plan can hold mutual funds, guaranteed investment certificate –GIC, cash, bonds and stock. This is how it works;
- investment earnings are tax-deferred until your retirement (by which you would be paying lower taxes)
- contributions are tax-deductible
- contributor must be under the age of 71
- must be earning an income and file income tax
Registered Education Savings Plan (RESP)
Save towards your child(ren) post-secondary education while getting some help from the federal government and in some cases, the provincial governments. For instance, The Saskatchewan Advantage Grant for Education Savings (SAGES) was created to provide a 10% grant on contributions made by parents/guardians since January 1, 2013. This incentive was however suspended in 2018.
The beneficiary of an RESP must be a permanent resident or Canadian citizen. Aside the 20% grant from the Canada Education Savings Grant (CESG) that the federal government may be able to contribute per child/per year, a child with RESP from a low or modest-income family may be able to access grants from the Canada Learning Bond (CLB).
Some of the investment opportunities available to immigrants in Saskatchewan are:
- Buying Real Estate
- Stock Market
- Mutual Funds
- Guaranteed Investment Certificates
Each of these options have investment risks that you should really consider before choosing which to go for, you might also want to consider using the help of professionals and online investing platforms with proven track records.