The Free TFSA VS RRSP Calculator
A Free TFSA VS RRSP Calculator (TFSA) and a registered retirement savings plan (RRSP) both offer advantages when saving for a variety of short- and long-term goals. A TFSA offers the flexibility to hold cash and investments such as stocks, GICs, bonds and mutual funds without incurring any taxes on withdrawal. An RRSP is designed primarily for retirement and provides an immediate tax deduction on contributions, with taxes paid only when funds are withdrawn.
Whether either type of investment vehicle is better for you will depend on a number of factors, including your annual income, expected tax rate at retirement, provincial rates and contribution room carry-forwards from prior years. This calculator is designed to help you compare the benefits of a TFSA with a conventional taxable investment account by looking at both the investment growth and the overall tax savings that would occur.
TFSA or RRSP? Choosing the Right Account for Your Financial Goals
The results from this calculator are based on the assumed average marginal tax rate of your province of residence as well as your current federal and provincial personal tax rates. It assumes that the TFSA is being used to invest in stocks, bonds and mutual funds, while the RRSP is invested in an index fund and that you will withdraw all investments from the TFSA at retirement.
The results from this calculator should be viewed as indicative and should not be considered financial advice. Please speak with a Wealthsimple advisor before making any decisions regarding your financial future.
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