The ABCs of saving - TFSAs and RRSPs

    Sun Life Financial offers information on which savings vehicle is right
    for you

    TORONTO, Jan. 7 /CNW/ - This year, a new acronym has been added to
Canadians' financial vocabulary. The Tax-Free Savings Account (TFSA) adds a
new option for Canadians to explore as they concentrate on ensuring their hard
earned dollars go further.
    "Canadians should investigate how TFSAs and RRSPs can fit into their
financial plan," says Rocco Taglioni, Vice-President, Individual Wealth, Sun
Life Financial Canada. "If you can, I'd recommend taking advantage of both of
these savings vehicles. However, every situation is unique so it's important
to work with a financial advisor who can help you determine your financial
needs and saving goals so you can choose the solutions that work best for

    A TFSA, available through work or through an advisor, may be ideal if
    -   Are saving for a big goal, like buying a home. A young couple may
        find using a TFSA to save for a down payment on a home more
        tax-efficient than the Home Buyers' Plan.
    -   Want to start an "emergency fund". Unlike an RRSP, a TFSA is not
        limited to a specific saving goal, so the money can be used for a
        broad range of needs.
    -   Are using all your RRSP contribution room each year and have
        additional savings to invest.
    -   Have non-registered savings and want to tax-shelter the investment
    -   Are retired and can no longer make RRSP contributions but still have
        income to invest.
    -   Want to begin saving now for future health care costs when retired.

    RRSPs are also an important savings tool for many Canadians:
    -   Many people put money in RRSPs to reduce the amount of income tax
        they pay.
    -   If you're self-employed, contributing to an RRSP may be the main way
        you save for retirement, since you probably aren't working at a
        company that sets up pension plans for its employees.
    -   If you work for a company that offers a group RRSP and
        employer-matching programs, you can benefit from the employer-matched
        RRSP contributions.
    -   And for many people, contributing to RRSPs will supplement the
        retirement income they'll receive from a pension plan,
        employer-sponsored group RRSP or government pension plans.

    For straight-forward, easy to understand information on TFSAs, RRSPs and
other aspects of financial planning, visit Sun Life Financial's award-winning

    About Sun Life Financial

    Sun Life Financial is a leading international financial services
organization providing a diverse range of protection and wealth accumulation
products and services to individuals and corporate customers. Chartered in
1865, Sun Life Financial and its partners today have operations in key markets
worldwide, including Canada, the United States, the United Kingdom, Ireland,
Hong Kong, the Philippines, Japan, Indonesia, India, China and Bermuda. As of
September 30, 2008, the Sun Life Financial group of companies had total assets
under management of CDN$389 billion. Sun Life Financial Inc. trades on the
Toronto (TSX), New York (NYSE) and Philippine (PSE) stock exchanges under
ticker symbol SLF.

For further information:

For further information: Krista Wilson, Manager, External
Communications, Sun Life Financial Canada, (519) 888-3900 x 4896,

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