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Stock impact report

Why Your TFSA — Not Your RRSP — Should Be Your Income Workhorse [Yahoo! Finance Canada]

Enbridge Inc (ENB) 
Last enbridge inc earnings: 2/14 07:00 am Check Earnings Report
US:NYSE Investor Relations: enbridge.com/investment-center/dashboard
The tax deduction is attractive, and the promise of tax-deferred growth sounds powerful. But when it comes to building reliable investment income, the Tax-Free Savings Account ( TFSA ) should be the priority tool to use. If your goal is to generate consistent income from dividends and distributions, the TFSA can quietly outperform the RRSP in ways many investors overlook. Tax-free income that stays tax-free The biggest advantage of the TFSA is simple: withdrawals are completely tax-free. RRSP withdrawals, on the other hand, are treated as ordinary income. Every dollar you take out gets added to your taxable income for the year. That means a portfolio designed to produce steady income could push you into a higher tax bracket in retirement. Imagine earning $20,000 in annual dividend income. In an RRSP or Registered Retirement Income Fund ( RRIF ), that $20,000 is fully taxable. In a TFSA, it remains entirely yours. The difference compounds over time. With a TFSA, investors can Show less Read more
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