The Question Everyone Asks
If you are like most Canadians, you have asked it before: Should I put my money into an RRSP or a TFSA? The stakes are high. Choose wrong and you could miss out on tens of thousands of dollars over your lifetime.
And let’s be clear. The banks aren’t going to tell you the whole story. Their advice often stops at opening an account. But this isn’t about accounts. It’s about building wealth.
The RRSP Advantage
The RRSP cuts your taxes today and builds retirement savings for tomorrow. That is powerful. But RRSP withdrawals are taxed as income in retirement. That means if you don’t plan properly, you could end up paying more than you saved.
The TFSA Advantage
The TFSA is one of the best wealth-building tools ever created in Canada. Your money grows tax-free. You can withdraw it tax-free. And you never lose your contribution room. It is flexible enough to fund a retirement trip or to pass on as part of your estate.
The Real Answer: Strategy
It’s not RRSP versus TFSA. It is RRSP and TFSA used strategically. For higher earners, the RRSP can be a tax-reduction powerhouse. For everyone, the TFSA is a long-term compounding machine. But only a financial planner can show you how to balance them so they work together instead of against you.
Stop Guessing. Start Building.
The sooner you stop guessing and start planning, the faster your money grows. Don’t leave thousands of dollars of future wealth on the table.
Talk to Lilley Financial Group today and get a plan that puts your money in the right place at the right time.
