Where to save your next $1,000

0:00 Canada has so many registered accounts. It's actually insane. TFSA, RRSP, FHSA, RESP, RDSP, LIRAs, your workplace pension, corporations. Each one has different tax rules, different limits, different withdrawal rules, and somehow you're supposed to just magically know which one to pick. You're busy, you're working, you might actually have a life, and then someone tells you you might be putting your money in the wrong account. Now you're stressed about something you didn't even know you're supposed to be stressed about it. I get it. Let's break this down a little bit more. Dalbar found that an average investor underperformed by 8 and 1/2%. Not from picking the wrong account, from overthinking and doing nothing. $5,000 in any registered account at 6.6% for 15 years grows to roughly 13,000. In a savings account at 1 or few percent, 5 to 8,000 bucks. That gap's over $7,000, and the difference between the best and the second best account, maybe a few hundred bucks. Picking the wrong account beats picking no account or not making a decision by a landslide. So, here's a simple framework. Step one is emergency fund, and this depends on your life. So, if you're stable, dual income, low debt, maybe just a couple months is fine. If you're self-employed or single income, could be 6 months to a year. Step two, kill any debt above 7%. Step three is employer RRSP or pension match, if you have one, that's free money. Step four is FHSA, first home savings account.

1:21 Only account in Canada with a tax deduction, tax-free growth, and tax-free withdrawal. But, go here only if you're actually thinking of buying. If you're not sure, TFSA is better because the FHSA just becomes extra RRSP room. Step five, RESP, if you have kids, 20% free money from the government. Step six, TFSA versus RRSP, the never-ending debate. And if you have a workplace pension or LIRA, the same rules apply towards the RRSP. Jamie Golombek at CIBC proved that if the tax rate is the same now and the same in retirement, and you reinvest the refund, RRSP and TFSA give you the exact same result. The real question is will your rate be lower later, and if you will actually reinvest the refund. Under 50,000 deduction only saves $196 per thousand, probably look at TFSA first. 50 to 80,000 saves 237 to 297 per thousand, only works if you invest the refund. Over 80,000 saves 3 to 535 per thousand dollars, so you're deducting at that 30-53% range now, and withdrawing at say 20 to 30% later, RRSP really shines here. Step seven, the non-registered after all registered accounts are full. The best financial plan is not the perfect one. It's the one you actually follow. Pick an account, automate $100 a month, just start. Build those habits, they're more foundational. Actually saving and investing now beats not doing that. And if you want to go deeper on any of this, FHSA versus TFSA, the RRSP refund math, RESP, any of it, please just tell me in the comments. I'd love to break down each one for you. Please like and follow for more.