RRSP Benefits:
• RRSP contributions are a good way to reduce your taxable income
• Your investments grow tax deferred while held in your RRSP
• When you retire you can use your RRSP to receive regular income
• A spousal RRSP can reduce your combined tax burden
• You can borrow from your RRSP to buy your first home or pay for your education
TFSA Benefits:
• TFSA investments grow tax free (Interest, capital gains and dividends are tax exempt)
• Withdrawals can be made whenever you wish and unlike an RRSP, they are tax-free
• TFSA contribution limits are not reduced following a withdrawal
• Withdrawals can be re-contributed in a subsequent calendar year(s)
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By Charles Marleau CIM® and William Mitchell CIM®
By Charles Marleau CIM® and William Mitchell CIM®