Should you invest in a Tax Free Savings Account (TFSA) or a Registered Retirement Savings Plan (RRSP)?
For most, the answer is “a bit of both.” Both plans are registered and provide a way to save for your retirement and other future lifestyle expenses. Current income levels play a large role in answering the question and both plans allow for your savings to remain tax sheltered while inside the plan. It’s also a good idea to ask yourself if you have a known short or medium-term need (under five years), or long term retirement needs. For more details review the key differences and pros and cons of each below:
With so many different options available, choosing where to invest your savings can be confusing. Just as diversity is key for a successful investment portfolio, the same holds true for investment vehicles, like RRSPs and TFSAs.
Both have important functions within an overall savings strategy. In an ideal situation, you’ll want to utilize both within your portfolio.
If you would like to discuss your options further, or if you have questions contact Ford Keast Wealth Management. We are ready to help you make the right decision.
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