Canada is slowly becoming a promising country which has many opportunities and other rights for immigrants. People from other countries are very excited to move to Canada as they have many opportunities in Canada when compared to other countries. The government of Canada also has a low-interest rate, and thus it is one of the safest places to invest. There are many options like forex, real estate, stocks etc. If you are planning to settle in Canada and want to invest your money in this country the following are some of the options available to you to grow your money:
Mutual Funds is a great way to maximize your funds at a long term. You cannot really say that there is no risk involved with mutual funds, but it is less risky than stock markets. In mutual funds, the money is invested in multiple companies, and thus you avoid the risk of putting all your money in one place. So even if one of the company runs at a loss you will not be affected very much.
Exchange Traded Funds:
The ETFs has many companies that are traded on the stock market, and one of the primary goals is to replicate an index or follow a particular currency or a financial asset. The Exchange Traded Funds have low management fees, and thus many investors are interested in investing in ETFs, and these are also traded in the same way as we would trade in stock market. You can simply buy and sell when the markets are open.
Registered Retirement Savings Plan (RRSP):
In Canada, you have RRSP which is a government registered plan which allows you to save for your future. It is a brilliant plan which helps you save for your future and at the same time allows you to reduce your income tax bills. You are allowed to pay RRSP until the age of 71, and after that, your money gets turned into RRIF (Registered Retirement Income Fund). The contributions you make are deducted from your income. You are allowed to withdraw an amount of $25,000, and this amount is given to you tax-free. The amount can be withdrawn via the HBP (House buyer’s plan) or LLP (Lifelong Learning Plan).
Tax-Free Savings Account (TFSA):
Canada has a program called the tax free savings account which will help you to save your investments from all the taxes that are issued on your money. The program is for everyone, and it does not depend on your annual income. Every year you need to make a contribution to the government, and a limit of $5,500 was set in the year 2016. You need to be at least 18 years of age and a resident of Canada to be eligible for TFSA.