TFSA vs RRSP – We Will Help You Decide!

TFSA vs RRSP

Canadians have never had so many rewarding ways to help their hard-earned money go the distance!

What is a RRSP?
A Registered Retirement Savings Plan (RRSP) is an investment account that allows you to save money for your retirement while lowering your income tax. RRSPs build your wealth over time, and will put more money in your pocket through tax savings today.
Where saving for the future is concerned, a Registered Retirement Savings Plan (RRSP) is one of your wisest options—and we’re happy to help you set one up so that you can be ready to Retire Your Way!

What is a TFSA?
The Tax-Free Savings Account (TFSA) is a flexible, registered general-purpose savings vehicle that allows Canadians over the age of 18 to set money aside, which grows tax-free, throughout their lifetime. Each calendar year, you can contribute up to the set TFSA dollar limit of that given year, plus any unused TFSA contribution room from the previous year—as well the amount you withdrew the year before. The annual The annual TFSA dollar limit for 2023 is $6,500.  The cumulative contribution limit in 2023 is $88,000.

The biggest determining factor for TFSA vs. RRSP is your income now vs. at retirement.

If your income now is higher than it will be at retirement, then the RRSP is the most effective option for tax efficiency. If your income now is lower than it will be in retirement, then the TFSA is the most effective option for tax efficiency.

With this in mind, our strategies will usually include both components, just weighted differently depending on your unique situation and financial goals.

Why Choose a TFSA?

·  Grow your savings tax free
When you invest in a TFSA any investment growth that is made through the account is not taxed.

·  Withdraw with ease
You can withdraw your funds from a TFSA at any time without penalty, plus withdrawals don’t count as income for taxation purposes (you already paid the taxes before you invested).

·  Keep your benefits
When you withdraw income from your TFSA it doesn’t affect your eligibility for income-related benefits and tax credits such as Old Age Security or Child Tax Benefit.

 Why Choose a RRSP?

·  For retirement and more
In addition to retirement, RRSPs can also be used for first-time home buyers and education costs through the Home Buyers’ Plan or Lifelong Learning Plan.

·  Lower your tax bill today
Regular contributions to a RRSP during working years will lower your tax bill when your income is usually highest.

·  Tax-deferred growth
Investments grow tax-deferred. Funds are withdrawn at retirement and typically in a lower tax bracket.

Get started on the right path by booking an appointment today!

Contact Us

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Financial Literacy: Meet Kristine

At VantageOne, we recognize the importance of Financial Literacy so much so that we actually have a special role dedicated to working with the schools and community groups in our region to improve their financial ability. Meet Kristine Lidstone, Financial Ability Liaison at VantageOne Credit Union.

Kristine started off working for credit unions right out of high school and started her 17 year career with VantageOne as a teller at our Main Branch and has worked in various positions throughout the organization including:

  • – Call Centre Representative (now Solutions Centre).
  • – As a Member Service Representative (MSR) in Armstrong for the opening of that branch.
  • – MSR and Account Manager (for seven years) at the Okanagan Landing Branch in Vernon.
  • – And she assisted with the opening of our Peachland branch.

In her role as Account Manager, she became very aware that our younger generation lacked basic knowledge in the area of everyday banking and credit that they needed in order to be successful at managing their own finances. It became her passion to improve the financial ability of those in the local communities and for over 17 years she has helped provide financial education workshops in the schools and for community organizations in Vernon, Armstrong & area. Kristine’s presentations are informative and fun and specifically tailored to the group she is presenting to, whether it is a Grade One class or Grade 12’s through to young adults and seniors. She is passionate about what she does and in high demand!

When Kristine isn’t at work you will likely find her out in the community walking her dogs, volunteering, watching hockey or enjoying time with her husband, three daughters, and two granddaughters.

Kristine offers digital and in-person presentations that are customized to your audience and needs. Connect with Kristine to learn more!

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Member Appreciation At Sunshine Festival

We want to say thank you.

As our way of saying thank you to you, we’re offering our members a small token to help pay for their lunch at this weekend’s Sunshine Festival.

How It Works:

The first 500 members that visit our Big Yellow VantageOne Tent in the center of the Sunshine Festival, will receive an envelope containing $5.

Members must come to the tent, and display one piece of valid Government Issued ID, and their VantageOne Member Card.

Limited to one per person, at the Sunshine Festival Only.

Not A Member?

That’s fine too, while this lunch offer is specifically for members only, come down and see us, we have an offer for you as well. The first 100 non-members will receive free member shares to join! Terms and conditions do apply.

Event Details
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Have your say! Why do you use your Credit Card?

While credit cards offer amazing convenience we would like to know what other reasons our members choose to pay with their credit cards vs other methods. Have your say and be entered to win a $100 Best Buy gift certificate!

Start Survey


Important Note: in order to be eligible to be entered into the contest for the $100 Best Buy gift card, you must register with Thought Exchange so that you’ve participated and we have a means of contacting you!

We value and appreciate all of our member’s feedback, and any thoughts that are provided will be kept confidential.

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