Skip to Main Content
  • CIBC.com
  • CIBC Private Wealth
  • CIBC Websites
Client Login
  • Home
  • Services
  • Market insights
  • Events
  • Process
  • Contact us
  • Blog
  • CIBC.com
  • CIBC Private Wealth
  • CIBC Websites
  • Client Login
 CIBC Private Wealth, Wood Gundy  CIBC Private Wealth, Wood Gundy

The Willson Investment Group

  • Home
  • Services
  • Market insights
  • Events
  • Process
  • Contact us
  • Blog

Blog

Address 1 Hume Street Suite 103 Collingwood ON, L9Y 0X3
Telephone Number (647) 588-4344
Email Email us
Email Email
Telephone Number Tel

Fraser Willson

January 16, 2025

Money Financial literacy
Facebook
LinkedIn
Twitter

Maximize Your Money – Savings Strategies for 2025

I'm often asked about the best savings strategies for 2025 and the usual suspects are TFSA, RRSP or debt reduction. Here are some considerations.

 

The 2025 Tax Free Savings Account (TFSA) contribution limit is $7,000, with a cumulative total contribution room of $102,000 for those eligible since 2009. TFSAs offer tax-free growth and flexible withdrawals. Registered Retirement Savings Plans (RRSPs) provide tax deductions and tax-deferred growth. They're particularly advantageous for high-income earners and are most effective when you contribute at a higher tax bracket than you withdraw at. Debt re-payment (e.g. mortgage, line of credit and credit cards) may look less attractive with rates expected to continue decreasing. However, reducing debt offers long-term benefits and peace of mind. 

 

 Some factors to consider are:

  1. Income level: Higher incomes benefit more from RRSP contributions due to greater tax savings if tax rate expected to be lower in retirement.  If tax rate expected to be higher in retirement, TFSA will have better after-tax rate of return.
  2. Interest rates/ Investment returns: Compare long-term rate expectations with potential investment returns.
  3. Type of debt: Prioritize high-interest debts before anything else.
  4. Other retirement income: If you have a pension, debt repayment might be more beneficial.

These final three options may provide the highest tax benefit but will not apply to everyone. The First Home Savings Account (FHSA) is for those saving for a first home. The Registered Educations Savings Plan (RESP) is for those with children who they expect will attend post-secondary education. The Registered Disability Savings Plan (RDSP) is for those who qualify for the Disability Tax Credit and are under 60 years old.

 

We use software that can compare the different options for your specific circumstance.  This helps to ensure our clients are making the most of the money they save.

 

Please give me a call if you would like to assess your strategy and how I can help. 

 

Fraser Willson, CFP, CIM | Senior Wealth Advisor | (647) 588-4344

CIBC Private Wealth consists of services provided by CIBC and certain of its subsidiaries, including CIBC Wood Gundy, a division of CIBC World Markets Inc. The CIBC logo and “CIBC Private Wealth” are trademarks of CIBC, used under license. “Wood Gundy” is a registered trademark of CIBC World Markets Inc. Fraser is an Investment Advisor with CIBC Wood Gundy in Collingwood. The views of Fraser do not necessarily reflect those of CIBC World Markets Inc. Clients are advised to seek advice regarding their particular circumstances from their personal tax and legal advisors. If you are currently a CIBC Wood Gundy client, please contact your Investment Advisor. This information, including any opinion, is based on various sources believed to be reliable, but its accuracy cannot be guaranteed and is subject to change. Clients are advised to seek advice regarding their particular circumstances from their personal tax and legal advisors If you are currently a CIBC Wood Gundy client, please contact your Investment Advisor.

Related posts

Fraser Willson

May 05, 2025

Family Finances in an Uncertain Economy

As a parent of a toddler, I know how wonderful our community is for raising kids—and how important it is to help secure their future, regardless of what’s happening in the economy.

Read more

Fraser Willson

January 24, 2025

Looking Ahead: What's in Store for 2025?

The end of one year and the start of another is a great time for reflection, it is also a great time to review your financial plan and investments.

Read more
 
 
  • Rates
  • FAQ
  • Agreements
  • Trademarks & Disclaimers
  • Privacy & Security
  • CIRO AdvisorReport
  • Accessibility at CIBC
  • Manage Cookie Preferences
  • Cookie Policy
 Canadian Investment Regulatory Organization  Canadian Investor Protection Fund

CIBC Private Wealth” consists of services provided by CIBC and certain of its subsidiaries through CIBC Private Banking; CIBC Private Investment Counsel, a division of CIBC Asset Management Inc. (“CAM”); CIBC Trust Corporation; and CIBC Wood Gundy, a division of CIBC World Markets Inc. (“WMI”). CIBC Private Banking provides solutions from CIBC Investor Services Inc. (“ISI”), CAM and credit products. CIBC Private Wealth services are available to qualified individuals. Insurance services are only available through CIBC Wood Gundy Financial Services Inc. In Quebec, insurance services are only available through CIBC Wood Gundy Financial Services (Quebec) Inc.


CIBC Private Wealth services are available to qualified individuals. The CIBC logo and “CIBC Private Wealth” are trademarks of CIBC, used under license.