Great video as always! We’re in our late 40s and 12yrs away from retirement but we continue to invest in both RRSP & TFSA with both our accounts maxed out in terms of contribution room!
Great comparison Adam. People need to know what they want to invest in before establishing an RRSP or TFSA. If they want to invest in stocks they have to use a brokerage account like TD Waterhouse or CIBC Mellon. You can’t hold equities in a non-brokerage account. If you only want to invest in mutual funds, GIC’s, etc then your accounts can be set up through normal banks & investment companies. I had to move my spouses TFSA from the bank to the brokerage side of the financial institution because she wanted to invest in stocks as well as mutual funds. Not hard to do but does require some paperwork so we wished we had established her TFSA in the brokerage side from the onset.
With investment banks and companies all over the place, nobody talks about how losses are avoided in trading either with stocks or index or otherwise. Everybody is on about profit this and that . Drop a message in WB ✚ one.three.one.three.three.zero.seven.three.nine.eight.four
TFSA is tax free while RRSP is tax deferred so it’s more advantageous to invest in TFSA first. But if you will be in a lower tax bracket when you retire then a RRSP may become a better option depending on your situation.
Great video. Just had a question on RRSP/RRIF. I already have an RRIF account . I still have a contribution room in my RRSP of $25K. Can I contribute that $25K to an RRSP? Basically I would like to know if I can have both an RRSP and an RRIF account at the same time. I am 66 years old. Thanks.
Thats why Adam says it should be called an investment account instead of savings account. You need to invest that money that you have been saving. Talk to a pro if you're unsure.
What would you recommend if someone plans to make MORE in retirement than they currently earn? I currently make just over 40,000 yearly, with a DB pension replacing 81% of my income at retirement. I'm saving to retire early, at 58 (I'm 38 now), I have almost $10,000 in my RRSP, I have a TFSA account that I'm using for retirement, which has almost an additional $10,000, and I've just recently switched to investing in ETFs in my TFSA (MUCH lower fees than the mutual funds in my RRSP and TFSA) with about $2200. I'm saving to earn just over $60,000 annually in retirement. Is it a bad idea to use a TFSA for this if I expect to earn MORE in retirement than I earn today?
Great question. I plan to make more money in retirement than I make now - how will I survive otherwise with inflation and costs of good going up? I also assume taxes will be going up as well. Does it make sense to invest in an RSP if your income will be higher in retirement than in your working years?
Another great video Adam ... My TFSA contribution room is maxed out. If I withdrawal , let's say $30,000. When can I make my next contribution and for how much to max out my contribution again?
Thanks Adam. We have an expression, “and, it’s the new or”. Life is short, get fries and onion rings, just like we should invest in rrsp and tfsa. Cheers!
When ready to retire.. do most people take out money yearly out of their rrsp? Is there a smart way of how to take out money to save more off of taxes ?
With investment banks and companies all over the place, nobody talks about how losses are avoided in trading either with stocks or index or otherwise. Everybody is on about profit this and that . Drop a message in .TELEGRM
Hey Adam, for high income families what is the most tax efficient way to max out both accounts. We have all of our rrsp room still available and about 3/4 of our TFSA room available (Just getting started in our late 20s). Planning on saving aggressively for about 5-7 years to get these caught up and maxed out. Then just top up the contribution room every year after that. What account should we max out first? We figured TFSA since any growth compounded over the years would be tax free and would be more beneficial then taxable growth in a RRSP. We both have pensions as well so we anticipate with having maxed out accounts in retirement and a pension our income wouldn’t be much less than it is in todays dollars. Thanks for any input!
Another excellent video! Thanks for all the content on your channel, Adam. 👍🏼 I go against most advice we find, focusing on maxing out my TFSA before putting anything on RRSP. My context is: early 40’s expecting to retire with a generous Defined Benefit Pension and currently, the largest account balance I have is on a LIRA. Does this strategy make sense? I have never found any video or article discussing this situation. I appreciate if you can comment. Thanks!
Hopefully you can unlock 50% of the LIRA in retirement. If you can still get a nice tax break from RRSP contributions, then focus on that still - but make sure to build up a good TFSA. With both a nice DB plan and registered accounts, you will want to delay your CPP later in life and draw down those registered accounts in the first 5-10 years of retirement more aggressively. A few years away for that tho!
Thank you so much for the video, I just have a question though. I have 3 investment accounts. 1 TFSA, that is maxed. 1 non-register, that has like 300k in it. 1 RRSP, that's not maxed yet. Should I max it? Or should I wait? I can see that my income is going to be higher in the next few years.
Hi Adam - This is a request for a future video. Are there any options for Canadians to protect assets using trusts or trust accounts? I'm specifically interested about any assets that get passed from one generation to the next and the ability to protect those assets in case of marriage breakdown. As my lawyer said to me, "I'm not working this hard to leave money to my daughter, then have some deadbeat spouse take half of it if they get divorced". That is a direct quote BTW. I find the available information to be sparse and somewhat confusing. I'm guessing this likely means there are not too many options, and they are expensive to implement. I'm hoping that you can shed some light on protecting intergeneration wealth. Thanks for the videos. I always look forward to them D
I'm going to share this with my daughters. they really need to see this video.
Glad you talked about those close to retirement.
Great video as always! We’re in our late 40s and 12yrs away from retirement but we continue to invest in both RRSP & TFSA with both our accounts maxed out in terms of contribution room!
Always great watching his videos
@16:28 - a little misspeak there - you said TFSA, but meant RRSP.
Correct! Thanks for the catch:)
Thank you for this video!
Great video! Thank you Sir.
Great comparison Adam. People need to know what they want to invest in before establishing an RRSP or TFSA. If they want to invest in stocks they have to use a brokerage account like TD Waterhouse or CIBC Mellon. You can’t hold equities in a non-brokerage account. If you only want to invest in mutual funds, GIC’s, etc then your accounts can be set up through normal banks & investment companies. I had to move my spouses TFSA from the bank to the brokerage side of the financial institution because she wanted to invest in stocks as well as mutual funds. Not hard to do but does require some paperwork so we wished we had established her TFSA in the brokerage side from the onset.
With investment banks and companies all over the place, nobody talks about how losses are avoided in trading either with stocks or index or otherwise. Everybody is on about profit this and that . Drop a message in WB ✚ one.three.one.three.three.zero.seven.three.nine.eight.four
TFSA is tax free while RRSP is tax deferred so it’s more advantageous to invest in TFSA first. But if you will be in a lower tax bracket when you retire then a RRSP may become a better option depending on your situation.
That is insanely very general. P.s. there is no one tax bracket, there are brackets, plural.
Please tell me the difference between RSSP and OMERS?
Retirement saving account that you manage and contribute to (RRSP) vs. a pension plan they manage and at least partially contribute to (Omers)
Great video. Just had a question on RRSP/RRIF. I already have an RRIF account . I still have a contribution room in my RRSP of $25K. Can I contribute that $25K to an RRSP? Basically I would like to know if I can have both an RRSP and an RRIF account at the same time. I am 66 years old. Thanks.
Yes you can
I still don't understand how to invest using these accounts. I have been having TFSA for about 4 years and have gotten zero dollars in interest.
Thats why Adam says it should be called an investment account instead of savings account. You need to invest that money that you have been saving. Talk to a pro if you're unsure.
What would you recommend if someone plans to make MORE in retirement than they currently earn? I currently make just over 40,000 yearly, with a DB pension replacing 81% of my income at retirement. I'm saving to retire early, at 58 (I'm 38 now), I have almost $10,000 in my RRSP, I have a TFSA account that I'm using for retirement, which has almost an additional $10,000, and I've just recently switched to investing in ETFs in my TFSA (MUCH lower fees than the mutual funds in my RRSP and TFSA) with about $2200. I'm saving to earn just over $60,000 annually in retirement. Is it a bad idea to use a TFSA for this if I expect to earn MORE in retirement than I earn today?
Great question. I plan to make more money in retirement than I make now - how will I survive otherwise with inflation and costs of good going up? I also assume taxes will be going up as well. Does it make sense to invest in an RSP if your income will be higher in retirement than in your working years?
Yup! A really important topic....and as usual, effective and clear presentation. 💯👍🇨🇦
Another great video Adam ... My TFSA contribution room is maxed out. If I withdrawal , let's say $30,000. When can I make my next contribution and for how much to max out my contribution again?
After a withdrawal from a TFSA you can only recontribute that amount at the start of the next calendar year.
Thanks Adam. We have an expression, “and, it’s the new or”. Life is short, get fries and onion rings, just like we should invest in rrsp and tfsa. Cheers!
When ready to retire.. do most people take out money yearly out of their rrsp? Is there a smart way of how to take out money to save more off of taxes ?
With investment banks and companies all over the place, nobody talks about how losses are avoided in trading either with stocks or index or otherwise. Everybody is on about profit this and that . Drop a message in .TELEGRM
NORRISTRADES in one word
Hey Adam, for high income families what is the most tax efficient way to max out both accounts. We have all of our rrsp room still available and about 3/4 of our TFSA room available (Just getting started in our late 20s). Planning on saving aggressively for about 5-7 years to get these caught up and maxed out. Then just top up the contribution room every year after that. What account should we max out first? We figured TFSA since any growth compounded over the years would be tax free and would be more beneficial then taxable growth in a RRSP. We both have pensions as well so we anticipate with having maxed out accounts in retirement and a pension our income wouldn’t be much less than it is in todays dollars. Thanks for any input!
Another excellent video! Thanks for all the content on your channel, Adam. 👍🏼
I go against most advice we find, focusing on maxing out my TFSA before putting anything on RRSP. My context is: early 40’s expecting to retire with a generous Defined Benefit Pension and currently, the largest account balance I have is on a LIRA. Does this strategy make sense? I have never found any video or article discussing this situation. I appreciate if you can comment. Thanks!
Hopefully you can unlock 50% of the LIRA in retirement. If you can still get a nice tax break from RRSP contributions, then focus on that still - but make sure to build up a good TFSA. With both a nice DB plan and registered accounts, you will want to delay your CPP later in life and draw down those registered accounts in the first 5-10 years of retirement more aggressively. A few years away for that tho!
Can I transfer a rrsp to a tfsa?
You could move money from RRSP to TFSA, but you would be taxed on the money...so yes, but with some tax bill...
It great how simple and well done your video’s are. How about, how inflation affects the numbers based on history?
Thank you so much for the video, I just have a question though. I have 3 investment accounts. 1 TFSA, that is maxed. 1 non-register, that has like 300k in it. 1 RRSP, that's not maxed yet. Should I max it? Or should I wait? I can see that my income is going to be higher in the next few years.
Max the rsp. Take the tax refund and reinvest that. Why wait for something that might NOT happen.
Hi Adam - This is a request for a future video. Are there any options for Canadians to protect assets using trusts or trust accounts? I'm specifically interested about any assets that get passed from one generation to the next and the ability to protect those assets in case of marriage breakdown. As my lawyer said to me, "I'm not working this hard to leave money to my daughter, then have some deadbeat spouse take half of it if they get divorced". That is a direct quote BTW. I find the available information to be sparse and somewhat confusing. I'm guessing this likely means there are not too many options, and they are expensive to implement. I'm hoping that you can shed some light on protecting intergeneration wealth.
Thanks for the videos. I always look forward to them
D