One of the more common questions we receive from clients is whether they should invest in an RRSP or a TFSA. And what we tell them is the same - Putting money away is a great idea – putting money in a RRSP is a “tax” idea.



 A TFSA is a great option for everyone – whether you are looking for a short-term or a long-term saving strategy, TFSAs, with a few contribution rules, are an easy way to save.



A RRSP is a long-term savings option, best suited for people who make more than $45,000/annually. It’s a great option when you are looking for a really good tax break TODAY, but when you take out the money in the future, you will pay tax on it. For most people, their tax rate will be lower once retired…

The “catch” is that if you cash RRSP’s out early, or while your income is higher, the tax penalty could be more than you originally saved.