Build tomorrow
Give every dollar you save a job and a deadline.
RRSP, TFSA, RESP — the accounts are not the strategy. The strategy is knowing what each pot is for, when you will need it, and which account treats that goal best at tax time.
- RRSP
- Deduction now, taxed later
- Contributions are deductible; withdrawals are taxable as income. Most useful when your rate today is higher than in retirement.
- TFSA
- No deduction, tax-free out
- Contributions are not deductible, and growth and withdrawals are generally not taxable.
- RESP
- Attracts government grant
- The federal Canada Education Savings Grant adds to contributions, subject to annual and lifetime limits set by the government.
What we work through together
We start from the goals, not the products: the emergency fund, the down payment, the education bill in twelve years, the retirement date. Each gets a timeline and a level of risk it can tolerate, and then the account structure follows.
For households saving toward something specific and unsure which account to use.
RRSP or TFSA first
Which one to fill depends on your income today versus in retirement, and on whether the money might be needed early. Usually the answer is a sequence, not a choice.
RESP and the education grant
How the grant works, the contribution pattern that captures the most of it, and what happens if the child does not attend a qualifying programme.
Segregated funds
Insurance-based investments with maturity and death benefit guarantees, potential creditor protection, and higher fees. We explain when the trade is worth it.
Matching risk to the deadline
Money needed in three years and money needed in thirty should not be invested the same way. Most portfolio regret comes from ignoring this.
Side by side
RRSP vs. TFSA vs. RESP
Three registered accounts, three completely different jobs.
Scroll the table sideways →
| RRSP | TFSA | RESP | |
|---|---|---|---|
| Contribution is deductible | Yes | No | No |
| Growth taxed annually | No | No | No |
| Withdrawals taxable | Yes, as income | No | Grant and growth taxable to the student |
| Government adds money | No | No | Yes, via education grant |
| Room restored after withdrawal | No, except HBP/LLP | Yes, the following year | Not applicable |
| Best suited to | Retirement, higher earners | Flexible goals, any timeline | A child's education |
Is this for you
When it helps, and when to wait.
We would rather tell you this is not your priority right now than sell you something you do not need. If the right-hand column describes you, say so on the call.
Worth a conversation if
- You are saving without a clear plan for which account to use
- You have children and have not started an education fund
- Your income changed significantly this year
- You have money sitting in a chequing account with no timeline attached
Worth pausing if
- You are carrying high-interest debt — clearing that usually beats any investment return
- You have no emergency fund yet
- You do not yet have basic protection in place for a household that depends on your income
Savings & investments — questions
Good questions to bring to the call.
These are the ones that come up most on this topic. Yours is welcome even if it is not here.
It comes down to your tax rate now versus in retirement, and whether you might need the money before then. Higher earners often lead with the RRSP; people with variable income or nearer-term goals often lead with the TFSA. For many households the honest answer is both, in a particular order.
Read next
Build tomorrow
Retirement planning
Turn what you have saved into income that lasts, in the right order.
Leave a legacy
Estate & legacy planning
Beneficiaries, liquidity and wealth transfer, coordinated with your lawyer and accountant.
Protect today
Life insurance
Replace the income your household depends on, for as long as it depends on it.
Everything on this page describes how these products generally work in Canada. Figures, terms, definitions and availability vary by insurer and by policy, and nothing here is a quote, a rate, or a guarantee of coverage or approval. Any strategy should be reviewed against your own situation with a licensed representative before you act on it.