The RRSP vs TFSA Decision
Channel: National Best
Date: 2020-01-29

The RRSP vs TFSA Decision
Have you asked yourself, 
What goes into my decision to invest in an RRSP or a TFSA?
Several key questions come to mind:
Do I have RRSP Contribution Room? 
Are my savings likely to be used for retirement?
What about Tax Efficiency?
What happens at withdrawal time?
Is my marginal tax rate higher now than it will be at retirement?

Consider a TFSA or Tax Free Savings Account:
It is a Tax Shelter for savings and investments.
It has been offered since January 1, 2009 
to those Canadians 18 or over.
The maximum contribution is NOT based on income. 
The annual contribution limit is $6000 for 2020 and 
Contribution room accumulates when not used.
Contributions are not tax-deductible, 
Investments are not taxable and 
There is no tax on withdrawals.
Withdrawals restore contribution room in the following year.
There is a penalty for over-contributions.
There is potential protection against creditors with a proper beneficiary designation.
A collateral assignment is allowed.

Now consider an RRSP or Registered Retirement Savings Plan:
Contribution room IS based on income.
In 2020 it is 18% of salary up to a maximum of $27,830 of 2019 income less pension adjustment.
Contributions are tax-deductible.

Investments are taxable at retirement.
Contribution room accumulates when not used but
Contribution room is lost upon withdrawal.
Maximum age is 71 then it must be converted to a RRIF or Registered Retirement Income Fund.
There is a penalty for over-contributions.
There is potential protection against creditors with a proper beneficiary designation.
Collateral assignment is NOT allowed.

My name is Dave MacDougall. 
As you can see, both RRSPs and TFSAs offer unique and invaluable Tax Sheltering capabilities.
For assistance growing your investments in line with your goals, priorities and risk tolerance, 
Call me today at (403) 830-7070 or 
email me at david.macdougall@nbbn.ca. 
I am a licensed investment and insurance advisor 
with National Best Financial Network. 
I look forward to meeting with you, 
and discovering more about your situation. 
What are you waiting for? 
How can I be of service to you?

Learn more:
https://www.facebook.com/FinancialxIn...
www.nbAdvantage.com
www.nationalbest.ca
Category
Education
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