I plan to have the funds in these growing for decades but I ...
I plan to have the funds in these growing for decades but I realized — if I put it in the TFSA, it’s tax free earnings but if I move it to the RRSP, it’ll get taxed when I withdraw it later. So maybe I have it in the RRSP from the beginning. But then will I be able rebalance my portfolio within the RRSP?
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Samanthaa : I actually put growth stocks in TFSA , etf in rrsp
You’ll get tax deductions when you put money into rrsp. For me is always rrsp first unless you need emergency fund
AgueroMbappe : The big benefit of the RRSP is a tax free growth. If you contribute to and withdraw from an RRSP at the same marginal rate, the after tax return is the same as a TFSA.
DanDha : I have like 30k+ combined between my TFSA and RRSP in XEQT. While technically suboptimal, I don't have to bother with currency conversion, or trying to re-balance across currencies by slicing and dicing my portfolio across my accounts, and having to calculate a pre-tax and after tax asset allocation.
Bravo Jordan OP DanDha : Ohh like you’re holding XEQT in both?
Bravo Jordan OP DanDha : And when referring to moving money I meant moving money from the TFSA to the RRSP not different brokerages. But I think my confusion comes from an assumption that my only savings would be in the TFSA - and moving it to RRSP would null and void my tax-free savings since it would be taxed upon withdrawal. It probably makes no sense to do that and makes more sense to put money in both the tfsa and rrsp so it can start compounding.
DanDha Bravo Jordan OP : So the TFSA and RRSP are like buckets, and into these buckets you and place a HISA, GIC, Stock, Bonds, ETF's in any combination.I had a similar misunderstanding about the TFSA, thinking once could onto hold Cash or open a TFSA HISA.