Having the financial resources are essential if you want to take a year off. There are several ways to finance your life projects. Your thirst for change can be quenched with good planning, discipline and a good sense of organization.
Periodic Savings and Investment Plan
With our Periodic Savings and Investment Plan, a set amount is transferred from your transactional account into your savings account1 at fixed intervals (every week, two weeks or month) throughout the year. You can change the frequency and amount of your payments whenever you like, and even suspend your payments if you're in a pinch.
After a while, the small amount becomes big enough to carry out projects like going back to school, taking a year off, etc. For the self-employed, it can also serve as a cushion for the unexpected or downward fluctuations in income.
Examples of Periodic Savings and Investment Plan - Investment Plan2
|Amount Invested||$10 / week||$20 / week|
|Amount accumulated after 10 years||$7,062||$14,123|
|Amount accumulated after 20 years||$19,708||$39,416|
My Tax-free Savings Account (TFSA)
Are you saving up for a project in the near future? The Tax-Free Savings Account (TFSA) is made for you. “What is it?” you ask?
The TFSA is an account registered with the Canada Revenue Agency. While there are no tax benefits with your actual contributions, the account does allow you to grow your savings and investments in a tax-sheltered way. In this sense, the TFSA is like your RRSP and can complement it – to help you plan for the short term, for example, or save for your retirement. Contrary to an RRSP, it allows you to make withdrawals whenever you please with no tax penalty while recovering your contribution room in subsequent years. Not bad, eh?3
Registered Retirement Savings Plan (RRSP)
Investing in an RRSP4 as a self-employed worker is capital (pardon the pun). Since you won't have a company pension plan and your sole income might be from government pension plans, it is in your best interests to contribute as soon as you enter the job market, no matter how small your investment.
Our personal loans offer a fixed or variable interest rate solution for carrying out all your medium-scale projects.
With our personal line of credit, you no longer complete a new application for each new project or when something unexpected comes up.
Complete your first and last application online!
If you own a home and you've already paid back at least 20% of its net worth, our Homeowner's Kit consolidates all our financing products. Tidy up your financial affairs to maximize interest savings8 and take advantage of investment opportunities or carry out the projects you've been dreaming about.
Covering All My Bases!
For what it’s worth, getting life and disability insurance on financing8 is a very inexpensive way to ensure peace of mind.
Do you dream of taking a year off? Make an appointment today with an advisor at one of our branches or by calling 514-252-1846 or 1-800-252-1846.
1. Administrative fees may apply to registered accounts; however, no fee will be charged for portfolios of $25,000 or more, or portfolios comprised of guaranteed investment certificates only. For more information on our fee schedule and its characteristics, go to www.laurentianbank.ca
2. Investments made at the start of the period, calculated at an annual compound interest rate of 6% without payment interruptions or changes for the duration of the set period.
3. No annual or withdrawal fees are applicable to a Tactical TFSA. A $125 fee will apply to any fund transfer (in whole or in part) to another institution. Certain fees may be subject to the GST and QST. Fees are subject to change. For more information on our fee schedule and its characteristics, go to www.laurentianbank.ca
4. Administrative fees may apply to registered accounts; however, no fee will be charged for portfolios of $25,000 or more, or portfolios comprised of guaranteed investment certificates only.
5. Subject to credit approval. For information on the rates in effect, contact your advisor or call 1-800-252-1846 (toll free).
6. Subject to credit approval. The usual account transaction fees apply. 7. Subject to credit approval.
8. Certain conditions apply. The total debt secured by the mortgage on the principal residence must not exceed 80% of the market value. Subject to credit approval by Laurentian Bank.
9. Subject to acceptance by the insurer, Industrial Alliance.