Wednesday, January 31, 2024

Lighthouse Wealth Management Introduces Two New Savings Accounts

 

Victoria, BC – As investors continue to search for a haven for their money to grow, given the unpredictable global climate, independent financial advisor Lighthouse Wealth Management has launched two new accounts.

 

Lighthouse Wealth Management is an independent investment advisory team at iA Private Wealth and focuses on helping affluent investors meet and sustain their retirement and financial goals.

 

Their First Home Savings Account (FHSA) is a new type of registered account designed to help people who don’t own a home or have not for the previous five years to save for a downpayment on their first home, tax-free. 

 

However, even if they do not buy a home or choose to rent, the FHSA can still be an indispensable tax planning tool for those seeking to reduce their or their children’s taxes.

 

An FHSA combines the tax deductions of a registered retirement savings plan (RRSP) with the tax-free earnings of a TFSA. This means that contributions to an FHSA are tax deductible, and as long as you make a qualifying withdrawal, the withdrawals are tax-free.

 

Investors can contribute $8,000 a year, up to a lifetime maximum of $40,000. Unused contributions may be carried forward up to a maximum annual contribution of $16,000.

 

There are no spousal contributions; only the account holder can claim tax deductions. Unlike RRSPs, you can only claim contributions made in that calendar year and cannot claim the deductions in the first 60 days of the following year.

 

The independent financial advisor also offers a Registered Education Savings Plan (RESP), which helps families prepare for their children’s post-secondary education. It offers individual RESPs for one beneficiary and a family RESP for multiple beneficiaries from the same family.

 

The incentive of a RESP comes from the grants offered by the federal and provincial governments. These grants include the Canada Education Savings Grant (CESG) provided by Employment and Social Development Canada, the Canada Learning Bond (CLB) and the BC Education Training and Education Savings Grant (BCTESG)

 

Contributions can be withdrawn at any time and are tax-free, there is no tax deduction for RESP contributions, and therefore, the tax has already been paid on these funds.

 

Lighthouse Wealth Management, iA Private Wealth, is a full-service, investment-led wealth advisory practice based in Victoria, BC. It has a diverse team of financial professionals who align a client’s business and financial affairs with their desired life outcomes. As independent financial advisors, they answer to their clients first.

 

To discuss these accounts and for more detail, contact Lighthouse Wealth Management at 250-405-4060, email: Email: steve.gaskin@iaprivatewealth.ca or go to https://www.lighthousewealthvictoria.com/

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