Don't rush to spend your Tax Return.
Tax season has come to an end. And many Canadians already received their tax returns. Financial advisors warn against treating the return as a lottery win and spending it on expensive tech gadget or designer item. Remember: tax return is a portion of your hard earned money and it is best to use it to grow your savings and income.
Pay off high interest debt.
Before spending more, make sure to pay off any debt (or portion of it) starting with the one that has higher interest rate.
Invest your Tax Return.
One can maximize benefits of tax return by investing it in the Tax-free vehicles like RRSP or TFSA accounts. RESP for children is another wise option. Consider opening one of so-called registered accounts (RRSP, TFSA and RESP among them) with Segregated Funds. It is a group of products that is offered by insurance companies and combine the benefits of investment growth and guaranteed insured amount. For more details on how Segregated Funds can benefit you contact our office.
Meet the match on your Group Retirement Account.
One of the best ways to make tax return work for your future is to invest it in the group benefits plan. If your work has group benefits plan set-up, not only will you get a match for your contribution (percentages and maximum amounts vary by the plan), but will also have that money invested for you with a low management fees . Because group retirement plans combine larger amounts of money, they receive lower management fees and often have access to better investment options than individual retirement savings accounts. If your employer doesn't have Group Pension Plan, our Group Benefits division can help.
Last but not least: use the tax season time to review your insurance needs. You already gathered your financial information and it will make it easier to spot any gaps in coverage when you meet with insurance advisor.