Canada gives you six ways
to invest without paying
more tax than you have to.
RRSP, TFSA, RESP, RDSP, FHSA, and LIRA. Each account is designed for a different goal and a different life stage. Most Canadians are using only one or two of them. A free consultation helps you understand which ones you are missing and how to use each one correctly.
Most Canadians are leaving real money on the table every year.
The Canadian government built six registered account types specifically to reduce your tax burden and help you save for specific goals. Each one works differently, has different contribution limits, and is better suited to certain life situations than others.
When these accounts are invested through insurance products rather than a bank, they carry additional advantages: potential creditor protection, bypass of probate, and named beneficiaries that can transfer wealth outside of the estate.
The consultation is free. We look at what you already have, what you are missing, and what makes the most sense given your income, your goals, and your family situation.
Every account type, explained plainly.
Each one works differently. Here is what you need to know about each account and who it is designed for.
Your RRSP contribution reduces your taxable income in the year you contribute, which lowers the tax you owe right now. The money grows inside the account without being taxed each year. You pay tax only when you withdraw, typically in retirement when your income and tax rate are lower. This is one of the most effective legal ways to reduce your annual tax bill while building your retirement savings at the same time.
The TFSA is the most flexible registered account Canada offers. You contribute with after-tax dollars, but everything that grows inside the account is completely tax-free, including withdrawals. Unlike the RRSP, you are not penalized for withdrawing. The money you take out can be re-contributed the following year without losing the room. For lower-income earners or anyone who does not need the immediate tax deduction an RRSP provides, the TFSA is often the better starting point.
The RESP gives you a 20 percent grant from the federal government on the first $2,500 contributed per year, per child. That is $500 per year in free money, up to a lifetime maximum of $7,200 per beneficiary. Lower-income families may qualify for additional grants. The money grows tax-sheltered, and when the child withdraws it for school expenses, it is taxed in their hands, not yours, which typically means little to no tax is paid.
The RDSP provides long-term financial security for Canadians with disabilities. The federal government can contribute up to $90,000 in grants and bonds over the lifetime of the plan, depending on family income. The Canada Disability Savings Grant matches contributions at rates of up to 300 percent for low-income families. The Canada Disability Savings Bond provides money without any required contribution for very low-income families. This account is significantly underused because many eligible Canadians do not know it exists.
The FHSA is the newest registered account in Canada, introduced in 2023. It combines the best features of the RRSP and the TFSA for one specific purpose: buying your first home. Contributions are tax-deductible like an RRSP, and withdrawals for a qualifying first home purchase are completely tax-free like a TFSA. You can contribute up to $8,000 per year to a maximum of $40,000 over your lifetime. If you are a first-time buyer, this account should be open before you open almost anything else.
When you leave a job that had a defined benefit or defined contribution pension plan, you do not lose those funds. They transfer into a Locked-In Retirement Account, which holds and grows that money until you retire. The funds are locked in because they originated as pension assets, meaning there are restrictions on when and how you can access them. A LIRA gives you control over how the money is invested while preserving it for retirement. At a certain age, depending on your province, the LIRA converts to a Life Income Fund (LIF) to provide retirement income.
Which account is right for you?
A quick reference to the key features of each account. Most Canadians should have more than one open at the same time.
From conversation to accounts set up and invested.
I set up registered accounts through insurance-based products because the added benefits matter: creditor protection for business owners, named beneficiaries that bypass the estate, and the ability to hold investments inside a life insurance contract for tax-efficient wealth transfer.
A lot of Canadians tell me they have a TFSA or RRSP at their bank but they are not sure what it is actually invested in or whether it is working as hard as it could. That is exactly the kind of conversation I am here for. The accounts themselves are simple. Making sure you are using the right ones, for the right amounts, invested correctly, is where the difference happens.
You are probably leaving government money on the table. Let's fix that.
Free consultation. No obligation. We review what you have, identify the gaps, and build a plan that uses every account type you qualify for.
General information only. Registered account rules, contribution limits, and eligible investments are subject to CRA guidelines and may change. All investments carry risk. Mukosolu Blessing Ezeife, Licensed Life Insurance Agent, operating under Greatway Financial.