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Contributions can be withdrawn at any time and are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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