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Canajun Finances Home » I did my RRSP and TFSA Now What?

I did my RRSP and TFSA Now What?

Seriously, I have friends ask me that exact question, with little or no context to explain much else. What do they mean by this? I thought you might know. I usually answer with my fatherly response, “Well that’s good, you should be proud.” The question, “How do I do an RRSP?” or “How do I DO a TFSA?” appears in my inbox many times, and I am really not sure how to answer without sounding rude or nasty (I do specialize in that, I know).

The way that RRSPs and TFSAs are marketed these days you almost want to stand outside a bank branch with some kind of brochure pointing

You can do more than just put money into a TFSA “Savings Account.” This account is essentially a bank account inside of a TFSA vehicle. You can also buy the Bank’s own High MER Mutual Funds for your RRSP. I suppose I should be celebrating that folks are at least trying to save? Nah, I think I’d rather stand outside a bank with a Sandwich Sign saying:

The End is Near and it has an MER of 3.2%!

and on the back



1.2% Interest on a TFSA Savings Account is not a good thing!

It's a little drastic. Given how cold it is in Canada in February, it is not very good for my health. The number of folks I know paying these fees is quite alarming (to me).

I have a concern. People seem to spend more time daydreaming about what car they want to buy someday. Yet, they will walk into a bank, hand a stranger $2000, and say, "Do something with it!" The bank person will gladly take it. They put it in whatever makes them enough money (maybe not, but that is my vision of what happens).

 Other TFSA then RRSP Resources

RRSP then TFSA ?

It is that time of the year where the argument about RRSP or TFSA starts. How about RRSP then TFSA as a possible solution? If you can do both without incurring debt, you are doing quite well.

RRSP to TFSA Grand Jete

Remember that an RRSP is simply a tax deferral program. Plan on moving that RRSP to TFSA. Do this in terms of the tax refund at least.

I did my RRSP and TFSA Now What?

Seriously, I have friends ask me that exact question, with little or no context to explain much else.

TFSA vs. RRSP?

TFSA or RRSP is a question many folks ask, but both have their place in. your financial plans. The TFSA seems better for short-term savings.

RRSP: Tax-Deferred Savings Plan

Your RRSP is a tax-deferred savings plan, you will eventually have to pay the CRA for your deposit, one way or another (yes death & taxes). #RRSP

The Spousal RRSP the Forgotten Savings Tool

Is the concept of the spousal RRSP now an outdated idea? No, the spousal RRSP is as important as it was before pension income splitting was available.

Feel Free to Comment

  1. Not just cars, most people spend more time researching which vacation, motorcycle, LCD TV, laptop, or smartphone to buy than any time to figure out how to invest. I’ve been saying this for years now “Learning how to invest should be taught in schoolh”!

  2. I might not get the volume of emails that you do with questions like that but its frustrating seeing things like that. Most people have no clue what to do with money let alone investments. I’ve learned a lot in the course of my life (most of it through the school of hard knocks) and the one thing that I think most people could benefit from a financial literacy course or training. All too often its just easier to take the ignorant route out.

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