When it comes to building wealth, registered accounts like RRSPs (Registered Retirement Savings Plans), TFSAs (Tax-Free Savings Accounts), and FHSAs (First Home Savings Accounts) are invaluable tools that every woman should consider using. These accounts are more than just places to save money; they offer tax advantages, flexibility, and the opportunity to grow your wealth over time.
RRSP: Saving for Your Future
An RRSP is designed to help you save for retirement. Contributions to an RRSP are tax-deductible, which means they can reduce your taxable income in the year you contribute. Additionally, the investments inside your RRSP grow tax-deferred, meaning you don’t pay taxes on earnings until you withdraw funds in retirement—when your income (and tax rate) may be lower. Keep in mind that the annual RRSP contribution limit is 18% of your earned income from the previous year, up to a maximum set by the government ($33,490 for 2025). The deadline for contributing to your RRSP is at the end of February or early March. No need to wait. Contributions can be made at anytime and periodically throughout the year. The more time the money has in the account, the more it can grow tax-deferred.
TFSA: Tax-Free Growth
The TFSA is an incredibly versatile account that allows your investments to grow tax-free. Unlike the RRSP, contributions to a TFSA are not tax-deductible, but any income, dividends, or capital gains earned within the account are completely tax-free—even when you withdraw funds. The annual contribution limit for 2025 is $7000, and unused contribution room can carry forward indefinitely. TFSAs are perfect for medium- to long-term goals like building an emergency fund, saving for a vacation, or even supplementing your retirement.
FHSA: First-Time Homebuyers’ Secret Weapon
If homeownership is one of your financial goals, the FHSA combines the best features of both RRSPs and TFSAs. Contributions are tax-deductible, and withdrawals (including investment income) are tax-free when used for a first home purchase. The annual contribution limit is $8,000, with a lifetime maximum of $40,000. However, you must be a first-time homebuyer to qualify. This account is relatively new but holds great promise for those looking to enter the housing market.
Why Use Registered Accounts?
Maximizing these accounts helps you take advantage of government incentives to save and invest. By contributing regularly and early, you can benefit from compounding returns while enjoying significant tax advantages. Setting up automatic contributions can simplify the process and ensure you’re making the most of your contribution room each year.
Take Action
Start by reviewing your financial objectives and determining which registered accounts align with your goals. Consider speaking with a financial advisor to create a strategy that maximizes the potential of these accounts. Remember, the earlier you start, the more you’ll benefit from years of tax-free or tax-deferred growth. Your future self will thank you!
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