Description: This animated video introduces a character named Hinata and his advisor with illustrated graphics to show the difference between an RRSP and TFSA.
Text “Ask an advisor” appears. The camera zooms out as the text lands in an outlined square. “RRSP or TFSA?” fades in below. An illustration of a vault draws on the right side of the frame.
Hinata: How do I choose between investing in an RRSP or a TFSA?
Description: Hinata sits in his advisor’s office with a cup of coffee on the desk in front of him. His advisor’s head nods to the right of the frame. A laptop is placed in between them.
Advisor: Well, first off, it depends on several things,
Description: Cut to Hinata and his advisor sitting behind her desk. She leans in and gestures towards the laptop.
Advisor: including your age, income, tax rate, the goal you’re saving for, and how long it’ll be until you need to use the money.
Description: Cut to five squares with icons and text, labelled “Age,” “Income,” “Tax rate,” “Goal” and “Time.”
Advisor: A registered retirement savings plan or RRSP is used to save for retirement.
Description: A pie graph labelled “RRSP” animates into the frame. An illustration of a Muskoka chair appears in the middle of the graph.
Advisor: When you put money into an RRSP, you get a tax receipt that can offset your income taxes.
Description: The advisor’s hand enters the frame and moves a coin into the pie graph. Cut to an illustration of a receipt. The advisor's hand brings the coin over to the receipt.
Advisor: You only pay tax on this money when you withdraw, and in retirement, you generally pay less tax than in your working years.
Description: Cut to line graph showing age from 20 to 90. The line representing income rises until retirement at age 65, then decreases gradually afterwards.
Advisor: A tax-free savings account or TFSA can be used to save for retirement
Description: A pie graph labelled “TFSA” animates into the frame. An illustration of a Muskoka chair appears in the middle of the graph.
Advisor: or any other goal.
Description: The camera zooms out to show two more pie graphs, one with an illustration of a new home, the other with an airplane.
Advisor: When you put money into a TFSA, you don’t get a tax-receipt like with an RRSP.
Description: The graph in the middle of the frame grows larger. The advisor’s hand enters and moves a coin into the pie graph.
Advisor: However, you also don’t pay tax on any increase in value in your TFSA,
Description: The hand pulls the coin out of the pie graph as the camera pans to a line graph representing savings over 15 years.
Advisor: or on money you withdraw from it at any date.
Description: An illustration of a receipt with scissors fades in as the graph drops slightly at the 15-year mark to show a withdrawal. The line graph continues to increase over another 10 years, another drop appears at 25 years, then finishes growing at 35 years.
Advisor: RRSP or TFSA or both? I can help you choose the best option for you.
Description: The camera zooms out of the laptop to return to Hinata and his advisor in her office.
Text “Let’s talk. Contact me today.” appears onscreen with the Canada Life logo and legal line: “Canada Life and design are trademarks of The Canada Life Assurance Company. canadalife.com 1-204-946-1190.”