Practical tips about RRSP
- RRSP age limit is 18 to 71 years.
- If a person earns over $50,000, then RRSP is a good choice.
- RRSP is better for long-term saving goals.
- RRSP is even more valuable if you receive a matching contribution from your employer.
- RRSP can be used to help buy your first home for a down payment.
- RRSP is an excellent long term retirement chassis.
- RRSP doesn’t provide tax-free withdrawals.
*Last date for making RRSP contribution is 1st March this year for the 2020 tax year.
Practical tips about TFSA
- TFSA’s minimum age is 18 with no maximum age limit.
- If a person earns under $50,000, then TFSA is a good choice.
- TFSA is very good for short or medium-term saving goals or if you are over 55.
- TFSA has higher flexibility in terms of the needs that may arise in future.
- TFSA has no plan focused on “First Time Home Buyers.”
- TFSA account is not a retirement planning tool, though it can be used for it.
- TFSA provides tax-free withdrawals.
- You can benefit from using both an RRSP and a TFSA to ensure a comfortable retirement.
