By - wellpaidprostitute
>$175k in RRSP for retirement savings (planning on 65:35 mix of equity & bond ETFs, index funds)
As a new comer to Canada, RRSPs are based on your previous year's incoem on your Canadian tax return. Since you don't have previous tax return, your RRSP room is $0. Learn about RRSPs here: https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/rrsps-related-plans/registered-retirement-savings-plan-rrsp.html
>$90k in RESP for kids' education (fixed deposits?)
You can't just dump $90k. Learn about RESPs here: [https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/registered-education-savings-plans-resps.html](https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/registered-education-savings-plans-resps.html)
>$45k in TFSA for 9-month emergency fund (idk, GICs?)
You have TFSA contribution room for the years you are 18 or older, valid SIN and a CDN tax resident. So right now, you would only get $6k if you meet those qualifications in 2021. Learn more about TFSAs here: [https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/tax-free-savings-account.html](https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/tax-free-savings-account.html) And your emergency fund should just be in a HISA.
Thanks, that's really helpful. Guess I really need a financial advisor when I arrive, this all looks complicated
It's not really complicated, you have just remember the rules:
RRSP: based on previous years income. The mont you can contribute will be on the Notice of Assessment (the document you get after you file a tax return).
TFSA: There is an annual amount that becomes available Jan 1 of each year. You can't go over. If you are an American, it's treated just like a taxable.
RESP: gets a little screwy, but if you read the link, it show how you can contribute a certain amount per year and get grant form government.
In Canada, a financial advisor is a sales person. Look for an independent fee-only certified financial planner.
I think that really is quite complicated and for someone who is a newcomer they should not even begin to invest without professional guidance.
Each of the paragraphs above could (and have been) expanded into books. The leap from going from no real understanding- Which is where OP currently is, to optimizing his situation is massive.
Your advice to work with a fee-for-service financial planner rather than someone at the bank is good
You might want a cross-border before, as there could be things you can do in your home country that would be more advantageous if there’s an equivalent like a rrsp that Canada recognizes. Depends where you’re coming from of course.
Hi, regarding “moving to Canada soon” the registered investments that you mentioned require investment space based on previous income or time. As a new Canadian resident you will have no RSP contribution room until you earn income, and for RESP and TFSA you would only have one year’s contribution room. Sorry to be the bearer of bad news.
>Sorry to be the bearer of bad news.
No worries, glad I found out now than later. Thanks for the heads up
If you're coming from the US, this[link](https://www.swanwealthcoaching.com/knowledge-centre/us-citizens-living-in-canada) on cross border issues should be helpful.
Putting already taxed money in RRSP doesn't make any sense even if you have a room which you don't.
Anyways, you'll have maybe to get a book or two about Canadian system or get some professional help at least initially.