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TFSA or RRSP


You would like to save and not pay tax on the growth or even reduce your taxable income and save taxes this year. TFSA or RRSP? It depends (a common answer from advisors).


Here are some of the questions you should ask yourself each time you consider TFSA v RRSP contribution.


Are you under age 71? If you are 71 and up, TFSA is the answer because you should be drawing RRSP as RRIF when you reach 71.


Do you have room to contribute to RRSP? If no (for example, you've used up your room or you didn't earn income), contribute to TFSA.


What is this savings for? If for retirement, then RRSP. If for any other reason, TFSA.


Do you know what your marginal tax rate is? If yes, is it higher now or when you retire? If you are not sure, ask me for a link to find out.


The above is a simple guidance for you to flow chart the question. What to invest in involves a much longer answer.


If you are looking for a savings plan that is tax efficient, that's where I come in. Give me a call and we can chat.

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