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You can still pay for your dream kitchen and save for retirement. You just need to know where to put your money – and where to take out your savings.

RRSP: Canadian government registered retirement savings plan

  • Funds contributed grow tax deferred; taxed once withdrawals start
  • Typically get a tax refund when you contribute

TFSA: general-purpose government registered savings account

  • Withdrawals are tax free
  • You can withdraw any amount at any time, being mindful of any product-specific restrictions,                    like a five-year GIC
  • More flexibility than RRSPs and no need to worry about losing government retirement benefits such as Old Age Security, or Guaranteed Income Supplement when funds are ultimately withdrawn

Non-registered Investments:

  • Offer a way to save beyond the allowable limits for RRSPs and TFSAs

Monday, January 28, 2013