RRSP (Registered Retirement Savings Plan)
Tax deduction now → lowers your income tax today.
Tax-deferred growth → no tax while it grows.
Best when you’re in a higher tax bracket.
Extra: helps with programs like Home Buyers Plan.
TFSA (Tax-Free Savings Account)
Tax-free growth → no tax ever on gains or withdrawals.
Withdraw anytime → super flexible.
No impact on income-tested benefits.
Best for short + long-term goals.
Non-Registered (Cash/Investment Account)
No contribution limits.
More flexibility (no rules on withdrawals).
Tax-efficient options (capital gains taxed lower than income).
Best for when RRSP/TFSA are maxed.
Simple way to think about it
RRSP = Lowers your taxable income & grows within the fund over time.
TFSA = Grow your money tax free immediately, within the maximum limits.
Non-registered = Recommended when RRSP & TFSA are maxed out.
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