Why were you not investing 30% more in RRSP in order to equate to investing the same amount of post tax money? One way that I have found that is easier for directly investing pre-tax money is to have your employer directly invest it into your RRSP as a pre-tax donation. It means that you will not see a physical income tax refund in April, but the full $1 is invested immediately, instead of being taxed then given to you in your pay cheque as $.70 which you could put into your TFSA or RRSP.
Great point that I wrestled with about the 30%, I really wanted to the out-of-pocket to be even to isolate the tax in the comparison. 100% agree with your 2nd point there, if possible to get it done before seeing the money it's sooo much easier to set up the habit!
Say you're in the situation where your TFSA is already maxxed out. I'm curious about how non-registered vs RRSP works out? Advantage of RRSP being you also get tax free growth within the account, but advantage to the non-registered that you can qualify for capital gains and dividend tax rates when you pull it out vs straight income.
Thanks for the detailed scenarios. I subscribed to encourage your channel a bit!
Thanks for the sub!
Ok folks. Let’s get Chad too 1000 subs after this weekend. He provides very good information.
Yes please!
Why were you not investing 30% more in RRSP in order to equate to investing the same amount of post tax money? One way that I have found that is easier for directly investing pre-tax money is to have your employer directly invest it into your RRSP as a pre-tax donation. It means that you will not see a physical income tax refund in April, but the full $1 is invested immediately, instead of being taxed then given to you in your pay cheque as $.70 which you could put into your TFSA or RRSP.
Great point that I wrestled with about the 30%, I really wanted to the out-of-pocket to be even to isolate the tax in the comparison. 100% agree with your 2nd point there, if possible to get it done before seeing the money it's sooo much easier to set up the habit!
One thing is matching RRSP from an employer- that is what sucked me in to the RRSP over the TFSA.
That's free money! Always take the match :)
Say you're in the situation where your TFSA is already maxxed out. I'm curious about how non-registered vs RRSP works out? Advantage of RRSP being you also get tax free growth within the account, but advantage to the non-registered that you can qualify for capital gains and dividend tax rates when you pull it out vs straight income.
Very true! I'll add that to my list of video ideas :) Keep 'em coming
Ok, were you reading my mind? I was going to search this exact question today.
Maybe I was :)
I can contribute $7000 to my TFSA. I can contribute $32121 in my RRSP. I'll max both. Thanks.
Awesome!