Financial Planning & Investing
Financial planning in Canada has a small number of structural choices that disproportionately affect outcomes — which registered accounts you use, how you allocate between them, and how those interact with government benefits in retirement. This section explains each piece.
Registered savings plans
The Canadian tax system gives you several registered accounts to save and invest inside. Each has a different purpose, contribution mechanic, and tax treatment — and choosing among them matters more than which individual investments you hold.
Registered savings plans
RRSP / RRIF
Retirement savings: tax-deductible contributions, tax-deferred growth, taxed on withdrawal.
TFSA
Tax-free growth and withdrawals; no deduction on contribution. Annual limit $7,000 (2025).
FHSA
First-home savings; combines RRSP-style deduction with TFSA-style tax-free withdrawal for a qualifying home.
RESP
Education savings: government grants up to 20% on the first $2,500/year.
RDSP
Disability savings: substantial federal grants and bonds for eligible beneficiaries.
Investing
Once you have the right accounts open, the next decision is how to invest inside them. The Canadian-specific concerns are dividend tax treatment, foreign-content rules, currency exposure, and how capital gains compare to interest income inside a non-registered account.
Investing
Retirement, pensions, and benefits
Retirement planning in Canada has three pillars: public benefits (CPP and OAS), employer pensions if you have one, and personal registered accounts. Most of the planning lift is in coordinating the timing and order of withdrawals across the three.
Revised: