Investments & Wealth | Ethgrity

You Are Richer Than You Think.

Most Canadians leave thousands in “Free Money” on the table. We help you claim government grants and build tax-efficient wealth.

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🏠 FHSA 🎓 RESP ♿ RDSP 💰 TFSA 📉 RRSP & Loans 🛡️ Seg Funds

FHSA: The First Home Savings Account

The “Unicorn” Account for Future Homeowners.

This is the most powerful tool available for first-time buyers. It combines the tax-deduction benefits of an RRSP with the tax-free withdrawal benefits of a TFSA.

  • Tax Deduction In: Contributions reduce your taxable income dollar-for-dollar (Get a refund).
  • Tax-Free Out: Withdrawals for a home purchase (principal + growth) are 100% tax-free.
  • Carry Forward: Unused room carries forward to the next year. Open it now to start the clock.
$8,000 / yr Contribution Limit $40,000 Lifetime Limit
$53,000+
Value after 5 Years (Max Contrib @ 6%)
You
Growth
Total
$50,000 Lifetime Limit Per Child 20% to 40% Instant Grant Return
$75,400+
Based on $2.5k/yr + Grants (15 Yrs @ 6%)
You
Govt
Total

RESP: The “Free Money” Machine

Claim what the government owes your kids.

The Registered Education Savings Plan is essential for parents. It’s not just saving; it’s leveraging government matching.

  • Basic Grant (CESG): Everyone gets 20% on the first $2,500/year. That’s $500 free.
  • Low Income Boost (A-CESG): Extra 10-20% on the first $500 for eligible families.
  • Canada Learning Bond (CLB): Up to $2,000 free for modest-income families, even with $0 contribution.
👶 The “CCB Hack”

Set up an auto-deposit from your Canada Child Benefit (CCB) directly into the RESP. You won’t miss the money, and it compounds for 18 years.

RDSP: The $90,000 Gift

Do you qualify for the Disability Tax Credit (DTC)?

The RDSP is the most generous government program in Canada. It is designed to ensure long-term financial security for those with disabilities.

  • Disability Savings Bond: Up to $20,000 given to low-income families with $0 contribution.
  • Matching Grants: The government matches contributions up to 300% (Put in $1, get $3). Max $70,000 lifetime grant.
  • Tax-Deferred: Money grows tax-free until withdrawal.
$200,000 Contribution Limit $90,000 Max Govt Grants/Bonds
$300k+
Max Grants + Growth over 20 Years
You
Govt
Total
Tax-Free All Withdrawals $7,000 / yr 2024 Limit (Indexed)
$395k+
Max Contrib for 25 Years @ 6%
Saved
Total

TFSA: The “Millionaire Maker”

Stop treating it like a savings account.

Use your TFSA for high-growth investments (Stocks, ETFs) because the CRA can never touch your profits.

  • 100% Tax-Free: Interest, dividends, and capital gains are yours to keep.
  • Flexible: Withdraw tax-free anytime. You get the contribution room back next year.
  • No Age Limit: Keep contributing forever (unlike RRSP).

RRSP: The “Tax Arbitrage” Machine

Pay yourself first, pay the taxman later (when you’re retired).

The core power of an RRSP isn’t just saving—it’s shifting income from your highest earning years (e.g., 43% tax) to your retirement years (e.g., 20% tax).

🚀 The RRSP Loan Multiplier

Unused room? Borrow money to max out your contribution before the deadline.

  1. Borrow $10,000 (at low rates) to invest in your RRSP.
  2. Trigger a Tax Refund (e.g., $3,000 – $4,000).
  3. Use refund to pay down loan immediately.
  4. Pay balance over 12 months while $10k grows tax-deferred.
💍 Spousal RRSP Trick

If one spouse earns significantly more, contribute to a “Spousal RRSP.” The high earner gets the tax deduction now, but the money belongs to the lower earner, reducing taxes in retirement.

Up to 53% Tax Refund Potential $60,000 Home Buyers Plan Limit
The Tax Gap
Keep the difference between Today’s Tax & Future Tax
Save ~43%
Contribution Year
⮕
Pay ~20%
Retirement Year

Comparison: RRSP vs. TFSA

Which one fits your current life stage?

Feature RRSP (Retirement) TFSA (Flexible)
Tax Benefit Tax Deduction (Reduces tax now) Tax-Free Withdrawal (No tax later)
Best For High Income Earners ($80k+) Any Income Level & Short Goals
Withdrawals Taxed as Income 100% Tax-Free
Contribution Room Based on 18% of earned income Fixed annual limit (e.g., $7,000)

The Advisor Edge: Segregated Funds

Available ONLY through licensed insurance advisors

🛡️

Creditor Protection

Assets may be protected from lawsuits and bankruptcy. Essential for business owners.

📜

Bypass Probate

Funds go directly to beneficiaries in weeks, skipping the 1.5% probate fee and keeping your estate private.

🔒

Principal Guarantees

Guarantees on your maturity and death benefit amounts (e.g., 75% or 100%), protecting your legacy.

📈

Estate Efficiency

Settles in weeks, not months. Your family gets liquidity immediately when they need it most.

💡 Pro Tip: Insurance as an Asset Class

Wealthy Canadians use Whole Life and Universal Life policies as a “Tax-Free Bond” inside their portfolio.

Explore Permanent Insurance Strategies →

Common Questions

What happens to my RESP if my child doesn’t go to university?
You have options. You can keep the plan open for up to 36 years, transfer it to a sibling, or roll the savings (up to $50k) into your own RRSP if you have room. You only return the government grant portion.
Can I have both an FHSA and an RRSP?
Yes! You can contribute to both. In fact, for a first home purchase, you can combine the FHSA ($40k limit) and the RRSP Home Buyers’ Plan ($60k limit) for a massive down payment.
Are Segregated Funds more expensive than Mutual Funds?
They often have slightly higher Management Expense Ratios (MERs) to cover the cost of the insurance guarantees (Principal protection and Death Benefit). For many clients, the estate planning savings (no probate fees) outweigh the cost difference.

Your Wealth Deserves a Strategy.

You work hard for your money. Let’s make sure it works hard for you.

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