Timeline for Asset Allocation between TFSA vs RRSP
Current License: CC BY-SA 3.0
7 events
| when toggle format | what | by | license | comment | |
|---|---|---|---|---|---|
| Feb 13, 2018 at 21:18 | comment | added | DavidS | Yes @Grade'Eh'Bacon not to discount your great answer, I just wanted to emphasize with a simple example a big point that is often misunderstood. | |
| Feb 13, 2018 at 21:15 | comment | added | Grade 'Eh' Bacon | @DavidS "There are some differences here if..." Yes, I believe that's what my answer covers. There are significant differences between the two plans, and of course, very very significant similarities. | |
| Feb 13, 2018 at 21:10 | comment | added | DavidS | @JohnDoe the TFSA and RRSP are more similar that your comment suggests. Say you put $1000 in an RRSP (including $300/30% tax refund) and $700 in a TFSA (minus $300 taxes/30%), and both investments grows by 10%. You withdraw the $1100 from your RRSP, which is taxed by 30% so you have $770. You withdraw the $770 from the TFSA, which isn't taxed at all. There are some differences here if your tax rate changes or if you hold US stocks in an RRSP, etc., but the similarities outweigh the differences in this case. | |
| Jan 17, 2018 at 23:52 | comment | added | Grade 'Eh' Bacon | @JohnDoe I've now added a section that addresses this. | |
| Jan 17, 2018 at 23:51 | history | edited | Grade 'Eh' Bacon | CC BY-SA 3.0 |
Added section on allocation within accounts
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| Jan 17, 2018 at 21:53 | comment | added | John Doe | Both my accounts are maxed out. People say to put stocks in my TFSA since they grow tax free, but my RRSP is for retirement so wouldn't it make sense to keep that account for long term growth like stocks? | |
| Jan 17, 2018 at 21:46 | history | answered | Grade 'Eh' Bacon | CC BY-SA 3.0 |