Saving for the Future
Learning Objectives
After studying this section, students should be able to:
- Understand the concept of inflation and the effect to cash savings
- Recognize the time value of money in growing net worth
- List common source areas (pillars) of retirement income in Canada
- Describe how government administered programs Canada Pension Plan (CPP), Old Age Security (OAS), and Guaranteed Income Supplement (GIS) work
- Outline differences between defined contribution and defined benefit pension plans
- Analyze and evaluate estimated tax rates of other sources of income in Canadian taxable accounts
- Understand the timing of when tax benefit is taken and tax is paid for various specific tax-advantaged accounts
