Investing in a tax smart account is one of the best ways to grow your money faster. Both Registered Retirement Savings Plans (RRSPs) and Tax Free Savings Accounts (TFSAs) offer unique benefits. Here is a quick overview of each:
- Save for retirement while reducing your income taxes
Defer the taxes on your investment income and pay only when you withdrawal the money.
- Borrow from yourself to buy your first home or pay for your or your spouse’s education.
- You can hold a variety of investment products within the account.
- Offers flexibility to save for anything.
- Since you are using after-tax dollars to contribute, there is no taxation when you withdraw the money or on the investment income earned.
- You have the best advantage if you can use this type of account for long-term savings and invest in something that will grow to meet your goal.
Everyone’s financial plan will be different. Schedule a meeting with me to find out what advice is best for you.
Denise M. Levine, CFP, FCSI, RRC
Financial Planner, Investment
& Retirement Planning
ROYAL BANK OF CANADA
3740 Moncton Street, Richmond BC V7E 3A4