Tax Free Savings Accounts and RRSP Investing are Two Ways to Save on Income Taxes in Ontario

Ontario is one of the most heavily taxed provinces in Canada and Ontarians are always looking for ways to save money and income taxes.

Some are steering away from the stock market and other higher risk investments, largely due to the turbulence in the economy over the past few years. Nowadays, people are turning towards safer investment products.

When you think about investing, the first place you may think to turn to is your bank. You may also consider consulting an Investment Advisor. The issue is that a bank can only expose you to their products and an Investment Advisor may recommend a product that is higher risk than you have an appetite for.

Believe it or not, Life Insurance Agents do not just arrange life insurance. Some insurance brokerages offer financial products. Outside of the available insurance products that carry financial incentives, many insurance companies offer RRSPs and tax free savings accounts.

An RRSP can be arranged as low, medium and high risk. A low risk RRSP will offer a good return with the lowest risk. Those who have a low appetite for risk are suitable for a low risk RRSP. If you already have RRSPs but prefer the features & benefits of an insurance company RRSP such as maturity and death benefit guarantees of up to 100%, creditor protection and bypassing probate, you can transfer it (if you don’t owe a loan against it), without paying a penalty.

When you purchase RRSPs, you can deduct your RRSP contributions from your income at the end of each year, thus reducing the income taxes you will have to pay. Even a $5,000 annual RRSP contribution can make a major difference when tax time comes.

Tax free savings accounts in Ontario are also offered by Ontario insurance companies and can be arranged through an Ontario Life Insurance Agent. A tax free savings account enables you to save up to $5,000 each year, tax free! Families use the tax free savings account to plan and save for expenses such as their children’s education, a down payment on a house and more.

There are different types of Life Insurance Agents in Ontario. Some work for a single insurance company and others work with all insurance companies. If you want to learn about how you can obtain financial investment products through an Ontario Insurance Agent, you will get the most benefit from dealing with an Ontario Life Insurance Agent who deals with all of the major insurance companies. That way you can find out about all that is available to you without having to call a litany of insurance companies yourself. To find out more about tax free savings accounts and RRSP investing with Ontario insurance companies to save on income taxes in Ontario please visit www.wecoveryou.ca or call 416-849-1653.