Investing in RRSP
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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 now than in retirement
Extra: helps with programs like Home Buyers’ Plan
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Investing in TFSA
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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
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Investing in Non Registered Plans
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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
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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.