Let’s take a minute to recap the key takeaways.
- Accounts are different from investments.
- You can hold multiple RRSPs and TFSAs, and transfer them between institutions without paying tax.
- Registered accounts allow your investments to grow tax-free.
- With RRSPs, you get a tax break now and pay tax later.
- With TFSAs, you contribute after-tax dollars, but withdraw tax-free.
Both RRSPs and TFSAs are powerful ways to save for retirement. If you have middle income or above, RRSPs may be your starting point. If you have lower income, a TFSA might be the better first step.
Understanding how these accounts work can help you make smarter, more confident decisions about your financial future.
