Ep.004: Financial Planners Debate: TFSA vs RRSP

Summary

In this episode of the Millennial Money Canada podcast, hosts Guillaume Girard and Sam Lichtman delve into the intricacies of Registered Retirement Savings Plans (RSPs) and Tax-Free Savings Accounts (TFSAs). They discuss the importance of understanding these financial tools, especially in the context of generational wealth planning. The conversation covers the tax implications of RSP contributions, how to maximize contributions, and the impact of pension adjustments on RSP limits. The hosts also address common misconceptions about RSP withdrawals and the overall benefits of these savings vehicles for retirement planning. In this conversation, Sam Lichtman and Guillaume Girard delve into the intricacies of RRSPs and TFSAs, discussing their tax implications, withdrawal strategies, and the benefits of spousal RRSPs. They explore the advantages and disadvantages of each account type, emphasizing the importance of strategic planning for retirement. The discussion also touches on common mistakes investors make with TFSAs and comparing investing in corporations versus registered accounts. Overall, the episode provides valuable insights into effective financial planning and investment strategies for Canadians.

Chapters

00:00 Introduction to RSP vs TFSA

02:42 Generational Wealth Planning

05:48 Understanding RSPs

08:07 Tax Implications of RSP Contributions

10:34 Maximizing RSP Contributions

13:12 Calculating RSP Contribution Limits

16:30 Pension Adjustments and RSPs

19:18 Withdrawing from RSPs and Taxation

29:15 Understanding RRSP Contributions and Tax Implications

32:57 Withdrawal Options from RRSP Before Retirement

35:19 Eligibility and Strategies for RRSP Withdrawals

38:11 Exploring Spousal RRSPs and Their Benefits

40:36 Introduction to Tax-Free Savings Accounts (TFSA)

42:38 Advantages and Disadvantages of TFSAs

44:41 TFSA vs RRSP: Prioritizing Contributions

48:10 Common Mistakes with TFSAs

51:03 Investing in Corporations vs RRSPs and TFSAs

🤝 Work with Us

🌐 Book an intro meeting today 👉 mwadvisors.ca
📚 Self-paced tax & investing course tailored for business owners 👉 courses.mwadvisors.ca

🔗 Connect & Follow Us for Insights

Podcast YouTube Channel:
https://www.youtube.com/@MillennialMoneyCanadaPodcast
TikTok: https://www.tiktok.com/@millennialmoneycanada?lang=en
Instagram: https://www.instagram.com/financialplannergui/
Guillaume on LinkedIn: https://www.linkedin.com/in/guillaume-girard-cfa-cmt-cfp-08487170/
Sam on LinkedIn: https://www.linkedin.com/in/sam-lichtman/

‍

Link to the article mentioned in the episode by Jamie Golombek: https://www.cibc.com/content/dam/personal_banking/advice_centre/tax-savings/rrsp-tfsa-business-en.pdf

Keywords

RRSP, TFSA, financial planning, tax implications, retirement savings, generational wealth, investment strategies, financial literacy, Canada, wealth management, RRSP, TFSA, tax implications, retirement planning, investment strategies, spousal RRSP, withdrawal options, tax-free growth, financial planning, corporate investments