As 2025 draws to a close, it’s a great time to review your savings plans and take advantage of valuable tax-efficient opportunities before the year ends. Whether you, your child, or your grandchild are saving for a first home or planning for future education expenses, there are important strategies that can help you make the most of your money.

First Home Savings Account (FHSA): A Path to Homeownership

If you’re planning to buy your first home, or if you want to help your kids to get into their first home, the First Home Savings Account (FHSA) offers a powerful combination of tax benefits and flexibility.

Key Benefits Include:

• Tax-Deductible Contributions: Reduces 2025 taxable income.
• Tax-Free Growth: Investments grow tax-free, helping them accumulate faster.
• Annual Contribution Limit: Contribute up to $8,000 per year, with unused room carried forward (up to $16,000 in any one year and $40,000 lifetime).

To take advantage in the 2025 tax year, please ensure your FHSA contributions are received by our office no later than December 19, 2025. New FHSA accounts should be opened ASAP.

Registered Education Savings Plan (RESP): Invest in Their Future

An RESP remains one of the best ways to save for a child’s or grandchild’s post-secondary education. It combines tax efficiency with valuable government incentives.

Here’s Why it Makes Sense:

• Tax Benefits: Investment growth is tax-deferred, and withdrawals are taxed in the student’s (typically lower) income bracket. Contributions themselves are withdrawn tax-free.
• Government Grants: Earn up to $500 per year through the Canada Education Savings Grant (CESG), with a lifetime maximum of $7,200 per beneficiary.
• Flexible Contributions and Withdrawals: Contribute up to $50,000 per beneficiary, and use the funds for tuition, books, housing, and more.

To receive the CESG for 2025, please ensure your RESP contribution is received by December 19, 2025. New RESP accounts should be opened ASAP.

How Protect Financial Can Help

Our wealth advisor can help you:

• Manage and optimize your FHSA and RESP contributions.
• Transfer existing accounts to Protect Financial for integrated, professional management.
• Provide personalized guidance to ensure your savings plans align with your broader financial goals.

If you have any questions or would like to make a contribution before year-end, call us directly at (416) 391-3764.

P.S. Education and homeownership are gifts that last a lifetime. Feel free to share this post with family or friends who may benefit from these valuable savings