TFSA vs RRSP: Max Your Retirement Growth

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u/FinEducation · Joined Oct 2024

Unsure where to save? See how RRSP, TFSA, and non-registered accounts stack up for retirement growth.

Last update Nov 2024
  • Scenario 1: RRSP
  • Scenario 2: TFSA
  • Scenario 3: Non-Registered

RRSP, TFSA, and non-registered accounts compared! The retirement bump reflects lower income and tax rates. RRSP gains extra lift from reinvested tax refunds each year, giving your returns an added boost.

Age

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Enter your before-tax annual income. It'll be used for calculating the tax rates applicable to the investment.

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Typically, people in retirement spend less, commonly 60%~80% of their working income level to support a comparable, non-fancy lifestyle.

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Time Value Assumptions

Heads Up!

If you're using Cost Basis (cb) for calculating capital gains:

Please be aware that very few countries currently use inflation-indexed cost basis. Double-check your local tax rules before publishing.

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How is Cash Value calculated?

RRSP: 1) tax-free growth; 2) tax-deferred contributions (pay tax when you withdraw). So, when you put money in, you can get some tax deduction next year; why not investing that saved tax money? This is what makes RRSP very advantageous.

Decisions / Expectations

(Expressions are evaluated at Year 0 only.)

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Calculations

(Expressions are evaluated at every year.)

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