TFSA or RRSP: Which Should You Contribute?
ฝัง
- เผยแพร่เมื่อ 5 ส.ค. 2024
- “Is it better to contribute money to your TFSA or RRSP accounts?”
Here are 5 criteria to help you decide whether you should contribute to your RRSP or TFSA.
But before you watch it, make sure you watch my previous video where I talk about the 7 differences between TFSA and RRSP here: • TFSA VS RRSP | 7 Dif...
You need to watch this video first because it will help you understand today’s episode better.
In today’s episode, I’ll show you how to prioritize RRSP and TFSA contributions and also share my golden contribution rule.
If you have questions about this topic after watching the video, leave a comment below, and I’ll respond as soon as possible.
IMPORTANT: You can now pre-order your copy of The TFSA Playbook for FREE.
Go here to place your order: www.TFSAPlaybook.ca
00:00 - Intro
01:05 - FIVE criteria to help you decide contribute to RRSP or TFSA
02:05 - The 1st criteria:Income
05:59 - The 2nd criteria: Type of Investments
09:23 - The 3rd criteria: Split Income With Lower income spouse
11:20 - The 4th criteria: Employer offer RRSP contribution matching program
12:31 - The 5th criteria: planning to buy your First Home or Going back to school full time
14:05 - Golden rule
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DISCLAIMER:
Tax planning is a personalized decision and will depend on your situation, priorities, and risk tolerance. Consult with your own legal and tax advisors to ensure you get the advice you personalized for you.
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I am glad I found your channel, I like the info you share, subscribed
Great video! Personally, I choose neither. I'd rather put every extra penny I have into my Margin account because I believe that I can grow those funds faster than in a Registered account. I find a Registered account to be too restrictive for my investing style. Just my personal preference.
Great comment. :)
Since you trade options, you know that covered call as well as deep in the money calls are available to be traded in your TFSA and RRSP account - which means that you are able to pay less tax on the gain you make on trading these strategies.
I have much of my cash in my margin trading account. But as an accountant, I also know how much we could get taxed on by trading constantly ...which is topic of another video.
If there're strategies I can move into my TFSA or RRSP, I gladly do so. At the end of the day, it isn't how much we make, it is how much we get to keep. :)
That's an interesting tip to prioritize frequent trades in your RRSP account over TFSA! Coincidentally that's how it's playing out for me 😆. Does the CRA explicitly state that TFSAs generally get scrutinized more than RRSPs?
CRA does not. Technically day trading isn't allowed in RRSP either.
Ty for the vid - For someone who is not totally sure of living in Canada long term i.e > 5years, does investing in RRSP makes sense? Considering TFSA is maxed out. Asking from withholding tax and additional income tax point of view when withdrawn
After you’ve maxed both RRSP and TFSA, what would be your preferred next investing target? Would you do brokerage account investing or real estate?
Hi Ian, I went the other way around. I started investing in real estate first, before contributing to RRSP or TFSA.
Real estate investments provide a lot of leverage that other investment class don't have.
Once I run out of credit/capital, I turn back to RRSP and TFSA.
This is more of an experience share, not an advice by any means.
Great breakdown, thank you Cherry! A quick scenario question - for someone who has ample room in both TFSA and RRSP and is a few years away from retirement, it would make sense to prioritize contribution into RRSP over TFSA to benefit from the tax deductions before the upcoming retirement correct? :)
It also goes back to how much you make in the years between now and retirement. If you're making the most before you retire (and some people do), then it makes sense to maximize your RRSP contribution.
Hey Chan, thanks for these videos. The question, can I invest and trade stocks in RRSP?
Yes, absolutely. You can trade stocks regularly in your TFSA and RRSP account.