TORONTO, ONTARIO — (Marketwire) — 01/19/13 — With the annual deadline for contributing to a Registered Retirement Savings Plan (RRSP) fast approaching, many Canadians are wondering whether they should invest solely in an RRSP or split their investment dollars between an RRSP and a Tax-Free Savings Account (TFSA). While the two investment vehicles complement each other and boast impressive adoption rates among Canadians, a BMO study has found that many are intrigued by the TFSA, in particular.
According to the national study:
“Whether saving for travel, the purchase of a home, a child-s education or retirement, it-s encouraging to see that Canadians are investing in their future by contributing to TFSAs and RRSPs,” said Serge Pepin, Vice President, Investment Strategy, BMO Asset Management Inc. “Both programs play important roles in helping Canadians save and invest in a tax-efficient manner. They complement each other and should be used in unison, so it-s important that investors understand their differences.”
Mr. Pepin noted that a TFSA allows Canadians to easily earn tax-free investment income to meet their savings needs. Key benefits of this registered plan include:
An RRSP, on the other hand, is a tax-deferred savings vehicle that is designed specifically to help Canadians save for their retirement. An RRSP is also a wise investment tool because:
“Ideally, Canadians should be contributing to both a TFSA and an RRSP because they each offer distinct advantages,” added Mr. Pepin.
BMO offers Canadians special, limited time TFSA and RRSP promotions
To encourage Canadians to boost their savings and invest for their future, BMO has introduced special offers on TFSA Savings Account deposits and RRSP contributions:
For more information on the TFSA, please visit: .
For more information on the RRSP, please visit: .
Get the latest BMO press releases via Twitter by following @BMOmedia.
The Pollara online survey was completed between October 11 and October 16, 2012, with a sample of 1,000 Canadians. A probability sample of this size would yield results accurate to +/- 3.1 per cent, 19 times out of 20.
BMO Mutual Funds are offered by BMO Investments Inc., a financial services firm and separate legal entity from the Bank of Montreal.
Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus of the mutual fund before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.
Contacts:
Media Contacts:
Rachael McKay, Toronto
416-867-3996
Valerie Doucet, Montreal
514-877-8224
Laurie Grant, Vancouver
604-665-7596
Internet:
Twitter: @BMOmedia