YES
NO
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YES
NO
YES
NO
YES
NO
YES
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YES
Does your employer offer RRSP matching?
Maximize that free money first. It’s part of your salary!
Do you have debt?
Do you have an emergency fund?
What kind of debt is it?
What are you saving for?
Is it your first home?
Do you own a home?
Do you earn more than $50,000 per year?
Do you earn more than $110,000 per year?
Do you anticipate that your annual income will be more than $110,000 per year in the next 3 years?
When the time comes to withdraw your funds, do you expect your income to be:
Low interest debt (like a mortgage)
Short-term purchase
A home
Retirement
Higher than it is today?
High interest debt (like credit cards)
Lower than it is today?
CONTRIBUTE TO AN FHSA
You'll save on taxes when you put the money in and when you take it out. And if you don't buy a home, you can roll the money into an RRSP – without affecting your RRSP contribution room. Once your FHSA is maxed out, head back to the chart.
CONTRIBUTE TO AN RRSP
You'll save money on taxes now and pay lower taxes later.
CONTRIBUTE TO A TFSA
Once it's maxed out, start making RRSP contributions if you're saving for retirement.
STOP
Use any spare
cash to eliminate
high-interest
debt
STOP
Use any spare
cash to start an emergency
fund
Note: there are contribution limits to FHSA, TFSA, and RRSP accounts.
To avoid penalties, always check that you have available contribution room before funding an account.
TFSA vs RRSP vs FHSA
Decision tree!
Answer a few basic questions, and we'll help you decide which account you might want to prioritize
