Piper makes a good buck as a lawyer but still has piles of school debt. Is her dream of owning a downtown Toronto condo realistic? + MORE Jan 25th
The best RRSP savings accountsThe best robo-advisors for RRSP investingThe best online brokers for RRSP investingWhat to know about RRSPs
The best RRSPs in Canada for 2023
Best RRSP savings accounts• EQ Bank RSP Savings Account*• Motive Financial RRSPBest robo-advisors for RRSP investing• Questwealth Portfolio*• Wealthsimple Invest*Best online brokers for RRSP investing• For passive investing: Wealthsimple Trade*• For active traders: Questrade*• For mutual funds: Qtrade*
Best RRSP savings account
EQ Bank RSP Savings Account*
I’m planning on making yearly withdrawals from my TFSA in the amount of 4% of my non-registered capital from age 65. This works out to $18,000 withdrawals from my TFSA account.
Replacement of this amount from the non-registered account each year will keep the TFSA maxed out in the new year.
What do you think of this strategy?
TFSA withdrawals in retirement
Tax-free savings accounts (TFSAs) are great because they are almost always tax-free. An account holder does not report interest, dividends or capital gains on their tax return. Withdrawals are tax-free as well. The only tax on a TFSA is on the dividends paid by foreign stocks, which will generally have 15% to 25% withholding tax levied before hitting the TFSA account.
As a result, Steve, your TFSA withdrawal strategy will not trigger any income tax, assuming that is one of your goals. Any withdrawals you take will be added to your TFSA room in the subsequent year along with the new annual limit for that year…
Since launched in 2009, TFSAs have enabled Canadians to hold cash, guaranteed investment certificates (GICs), stocks, bonds, exchange-traded funds (ETFs) or mutual funds within a structure backed by the Canadian government. By taking advantage of this versatility, you can better tailor your financial strategies and goals. Just like selecting the best shows to stream or researching the best places to eat in any given city, there’s a lot that goes into choosing the best TFSA for you. You’ll have to consider many factors, including your use of other registered accounts, like a registered retirement savings plan (RRSP), your life stage, your level of comfort with investing on your own, and your wealth-building strategy…