A common misunderstanding about TFSA and RRSP

Geoff Cook - CFP, CHAIP

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I am constantly explaining a common misunderstanding to people. They are not aware of their freedom with their RRSP's and TFSA's.

Let me explain...

What most people think is that these are accounts that you go and open at a Bank and that is the only place you can hold one.

- You can have as many TFSA's or RRSP's as you want with as many different institutions as you want, as long as you fall within the limit of space that is available to you.

For Example: You are allowed to put $5000.00 a year in to a TFSA and right now we as Canadians have $20,000 in available room.

You are able to deposit...

- $2000 in a GIC at the Bank.
- $3000 in an Etrade account buying stocks.
- $1000 in mutual funds with Manulife.
- $2000 in mutual funds with Investors Group.
- $2000 in a high interest savings account with ING.
-$10,000 in a couple investments at Infinite Financial.

You can hold a variety of different investments in the RRSP and TFSA account. Some of which include;

-Real Estate
-Mutual Funds
-Hedge Funds
-Gold and Silver

Now I do not reccomend having accounts all over the place this is just meant to be an illustration.

What I am getting at here is... As long as you only deposit within our available limits, you can have your money wherever you want.

When dealing in financial matters, you are urged to consult an advisor for legal, tax or investment advice. Every effort has been made to present information in a clear, exacting manner. However neither the publisher nor the authors can be held responsible for any losses incurred due to the actions of any individual as the result of this post or any errors or omissions contained herein.

Infinite Financial places mutual fund transactions through Banwell Financial Inc. and Life Insurance transactions through Bridgeforce. To learn more about these relationships - click here

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