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Should you Invest in an RRSP, TFSA or Non-Registered Account? - Canadian Budget Binder
UNDERSTANDING HOW YOUR MONEY IS INVESTED IS HALF THE BATTLE One of the most common questions I hear in my job is ‘what type of account should I be saving in?’ If you are just getting started with investing, then you may have heard about RRSP’s and TFSA’s but not really know the difference between them and when you should be using each one. That’s what I’m here to talk about today, the pros, the cons, and the best time to use each of these accounts. When it comes to basic investing you have three main account types you can use; an RRSP, a TFSA, or a non-registered account. Each of these have their own positives and negatives, so it’s helpful to figure out the most valuable for your current situation. You can hold a variety of investments (stocks, mutual funds, ETF’s, etc.) in any of these accounts; there are a few limitations in RRSP’s and TFSA’s, but unless you are a very high risk, speculative investor, this will likely never come up. RRSP’s (Registered Retirement Savings Plans) Since you are here reading a blog about finance, I’m going to assume that you have heard of an RRSP. …