The Walton Financial Group offers tips on choosing a Retirement Savings Plan
A TFSA or an RRSP ? Which is my best choice? Walton Financial Group in Barrie has advice about TFSA and RRSP approaches to retirement savings plans
Tax Free Savings account VS Registered Retirement Savings Plan . Which is best ?
The answer to this questions is simple . It depends on these variables :
INCOME LEVEL :
Low income earners should look first at a TFSA . When you anual income grows , you can switch to a RRSP and get a tax refund
CONTRIBUTION AMOUNT
You can only contribute $6,000 a year to a TFSA . For an RRSP you can contribute 18% of the previous years income to a maximum of $26,500 . So, if you want to make a larger contribution , the RRSP is the way to go
YOUR AGE
After the year in which you turn age 71 , you cannot add to an RRSP . A TFSA requires a minimum age of 18 but there is no minimum age for a RRSP .
INCOME EXPECTATIONS
If you expect to be in a lower tax bracket after you retire , the RRSP is the better choice , but if you think you will need to apply for the Guaranteed Income Supplement , put your savings into a TFSA . As well , if you expect you Retirement income to be higher than your full employment years there will ne a point where it makes sense to go the TFSA route as RRSP withdrawals are fully taxed whereas TFSA are not
TWO RULES FOR RETIREMENT INVESTMENT PLANNING :
1 .get expert advice and that is what The Walton Financial Group provides
2. Make a contribution . If you don’t put anything in now, there won’t be anything to withdraw when you retire
Call The Walton Financial Group in Barrie Ontario and set up an appointment to discuss the best options for your retirement savings plan
