How to invest for the future as a foreign-trained dentist.
As a foreign-trained dentist in Canada, focusing on saving for the future goes beyond mere financial stability; it’s also about enhancing professional development and harnessing the power of compound interest. By initiating smart planning today, you are laying a strong foundation to enjoy the lifestyle you aspire to and sustain it in the long run. Your hard work and dedication deserve a secure and prosperous future, and proactive financial planning is the key to manifesting those dreams into reality.
Whether you are new to Canada, returning after studying abroad, or simply unsure about your investment and financial planning options, we are here to help. In the upcoming weeks, through a series of focused articles, we will equip you with an in-depth understanding of tax-advantaged accounts and their benefits. Please consult the chart below to identify which types of accounts you are eligible for based on your residency and citizenship status.
| Article date | Citizen | Permanent Resident | Non-resident | Student Visa | |
|---|---|---|---|---|---|
| RRSP (Registered Retirement Savings Plan) | May 23 | Yes – up to 18% of your earned income in the previous year (not including dividends). | Yes – up to 18% of your earned income in the previous year (not including dividends) | No. Must be a Canadian resident for tax purposes to contribute to RRSP. | Yes* – if you are considered a resident (permanent or temporary) and have earned income previously while in Canada. |
| TFSA (Tax-Free Savings Account) | June 5 | Yes – 2024 TFSA room = $7,000. Your lifetime maximum depends on when you turned 18 or when you became a resident of Canada. | Yes – 2024 TFSA room = $7,000. Your lifetime maximum depends on when you turned 18 or when you became a resident of Canada. | Yes, but it is not advised! As a non-resident you are taxed 1% per month on contributions as a non-resident. | Yes* – if you are considered a resident (permanent or temporary). You do not require previous income. |
| FHSA (First Home Savings Account) | June 18 | Yes – annual maximum contributions of $8000, up to a lifetime maximum of $40,000. | Yes – annual maximum contributions of $8000, up to a lifetime maximum of $40,000. | No | Yes* – if you are considered a resident (permanent or temporary). You do not require previous income |
| RESP (Registered Education Savings Plan) | July 2 | Yes – the lifetime maximum per beneficiary is $50,000, however you will not receive grants on this full amount. | Yes | Yes* – there is no residency requirement for the subscriber to open an RESP, however you do need a social insurance number. The beneficiary(ies) needs to be a Canadian resident for tax purposes. | Yes* – regardless of your residency status, you can open an RESP for a beneficiary. The beneficiary needs to be a resident to open the account and take advantage of government grants. |
In the next few weeks we will dive into more detail on each account. If you have any questions, or would like to set up a call with us to discuss your options, please reach out HERE at any time.