TFSAs vs. RRSPs

[@wealthcanada]

I usually recommend people focus on maxing out their TFSA first, then RRSP. To be honest, the goal should be to max out both accounts, not choose one or the other.

[@wl03bu]

I'm watching this 9 years later and didn't think of this!

[@Vishal-ih3tc]

There is no loop hole in TFSA. It is the feature that is why it's called Tax Free Saving Account. It is Tax free its feature, not loop hole.

[@vk2461]

Also, you pay tax on your TFSA contributions before-hand (assuming it is income). Unless it's a tax refund or transfer, or something.

[@sojohnny....8824]

@@vk2461 you don't pay taxes on it, hence tax free

[@rochester3]

loop hole is when you invest in the stock market you can make profits tax free and the same with rrsp

[@GeneBasler]

You don’t think they can change the rules and take it away, or inflate it away, or dilute it, or restrict your access to it?

[@GeneBasler]

Maybe I shouldn’t have called it a loophole. I should have called it a government-engineered retirement instrument the rules of ownership of which they can change at their whim.

[@LindaPatricia02]

Its worse here, our economy is like a flailing fish, fighting for its life. The normal state of the U.S. economy is actually very bad. Because of this it goes into convulsive spasms fighting to grow any way it can out of desperation. Tricks, gimmicks, rule changes try to stimulate the economy and prevent it from falling but they only bring temporary relief to people since, when you factor in inflation we are declining.

[@CarolinaJoseph01]

People believe their currency has the worth it does because they have no other option. Even in a hyperinflationary environment, individuals must continue to use their hyperinflationary currency since they likely have minimal access to other currencies or gold/silver coins.

[@SusanNancy1]

Inflation is gradually going to become part of us and due to that fact any money you keep in cash or in a low-interest account declines in value each year. Investing is the only way to make your money grow and unless you have an exceptionally high income, investing is the only way most people will ever have enough money to retire.

[@MarkEdward2]

This is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? I'm in dire need of proper portfolio allocation

[@SusanNancy1]

My CFA NICOLE ANASTASIA PLUMLEE a renowned figure in her line of work. I recommend researching her credentials further... She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.

[@MarkEdward2]

Just ran an online search on her name and came across her websiite; pretty well educated. thank you for sharing.

[@BCampbellGBC]

Or you can max out your full RRSP contribution room and stuff the tax return into a TFSA. $5500/year is not a lot of money and these loopholes will probably be clawed back by the time most of us are 65 anyways... Basically, don't count on the government to fund your retirement. Save all you can and invest wisely.

[@vk2461]

This.

[@mysterycomment1553]

Or you can enjoy your life and not just save and invest all your money only to plan for retirement. Maxing our a rrsp, who knows what taxes will be in 30 years. In the long run tax free is where it’s at.

[@XRDMASTER]

@@mysterycomment1553 This is also known as the "357" or Magnum retirement plan. Once you can no longer earn, you end it.

[@jordanthomson8675]

You didn’t mention taxes upon withdrawal of the rrsp

[@TZCoder]

From the video they are not saying the fact that is tax free is the loophole, the loophole is that it doesn't count as income hence qualifying you for the income supplement under certain conditions. Seems to be a hard one to plan around due to the time frame.

[@YuriTheDon]

Finally someone gets it. So many people missed the "punch" of this video. I don't agree with his strategy (since policy can change significantly over the course of a lifetime) but most commenters didn't even understand what the loophole was.

[@fayeh4412]

I was going to say the same thing - all these people commenting the "tax free" part as loophole, which makes me wonder how much people actually understands this video

[@user-wj9jm1ox8i]

@@fayeh4412does this loophole still work?

[@rgibson182]

What about if you earn higher income now. At $100,000 or more you really need that tax deduction. My opinion is that if you make 60k or less, tfsa first. 60k or more and RSP is more important.

[@Bondanalloy]

this is mostly true, but if you make 100k per year, just kick the 5.5% maximum into a tfsa any way it's basically free money you'll be making.

[@Alex-rl6ww]

just max both at that point tbh

[@mysterycomment1553]

Steven Briscoe just if it actually continues to grow. Market could fall just before retirement and a person could lose $100K’s overnight. See with a tfsa you can pull your money out if you sense a crash. Rrsp you can’t without paying tax. Tfsa wins in my books.

[@elmayo1665]

​@@mysterycomment1553even if you use an RRSP, you can pull your money out of the market, but leave it in the RRSP itself.

[@rochester3]

the loop hole in a tfsa is when you make profits on the money contributed in a tfsa, the profits are tax free.

[@GeneBasler]

This is why Satoshi emphasized the importance of a trustless money system… They can close that loophole at any time. Whenever you put your money into a retirement instrument that is government approved you are trusting that nobody’s ever going to move the goalposts at any point along the road to retirement.

[@melanatedone4894]

Great Simple and Effective Explanation thanks for sharing

[@pabloottawa]

You're screwed either way because the loopholes will be closed and the conditions will change..... A lot can happen in 30 years.

[@Melissa-gv6hd]

Pabloottawa P

[@89emeza]

yes i wanted to ask how can we be sure the loophole wont change in 30 years...

[@jamx97]

Electing a liberal government is a sure way to close that loop hole.

[@rochester3]

@@jamx97 if your not investing the money into stocks its not a loophole

[@jamx97]

@@rochester3 What?

[@gagangangwal4235]

Finally I find someone who thinks on the same lines

[@missgh1000]

This is of course if GIS will still be going by the time you retire

[@brokenjava11]

Here is a better way to save money. End CBC funding (1.5 Billion) and use that to lower income taxes.

[@linksys813]

lmfao word

[@EmilSosnin]

YES

[@jordanw9456]

Oh brilliant idea, that'll save about $40 per person a year! Going to use that new money to buy half a netflix subscription!

[@iamb.c9927]

Thank you

[@arkadandfortuna1582]

I still don’t get it, I’m even more confused

[@wealthcanada]

I agree, this video is a bit confusing. Do you have a TFSA or RRSP account? In general, the TFSA is best to focus on first. For 2023 you get $6500 contribution room, for 2024 it will be $7000. If you haven't contributed any move to your TFSA in the past, you will have past years contribution room available you as well. Each year you receive 'contribution room' which basically just means new space in the account, think of it like a piggy bank and each year it gets a little bigger.

[@MelissaThomas-v2k]

796 Jimmy Via

[@Abo39FooR]

We dont have these in my country idk why I watched this video fully lol

[@budweiser416]

Yeah but isn't rrsp helpfull in tax season to lower income so you don't pay tax towards filing your tax?

[@rhymeswithteeth]

This video makes a mistake at 1:28. He's talking about RRSPs and how much money she's left with, per year, in retirement after she pays back the taxes. The screen shows the sum of $29,000 with TFSA above it. It should have said RRSP above the $29,000. Make you wonder if they know what they'rre talking about when they miss such a glaring mistake.

[@KevalPrajapatiSS]

I had a feeling that was a mistake...

[@MajorEasley]

Amazing Video. Explained so well. Thank you.

[@CoverdaleErin-e9r]

864 Kenneth Oval

[@jerrylee3887]

This method is useless for retirement

[@BusterDarcy]

Why?

[@DavidAdlawan]

@@BusterDarcyTAXES