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in si de ha lto n. co m O ak vi lle B ea ve r | T hu rs da y, F eb ru ar y 7, 20 19 | 14 Custom made Kitchen and Bathroom Cabinetry | Closet Systems Entertainment Units | Basement Renovations | Full Renos and More! Create Your Dream Look ♦ 100% Canadian Made Cabinetry ♦Quality Craftsmanship ♦ 20+ Years Experience ♦ Visit our 6000 sqft Design Centre Units 2-3 333 Wyecroft Rd, Oakville T 905.844.3332 F 905.844.3334 www.aromakitchens.ca | info@aromakitchens.ca "FREE INSTALLATION" Offer applies to new purchases only on cabinetry over $5000 before taxes. Please visit showroom for further details. Some restrictions apply 1.80% 8 MONTHS 2.80% 8 MONTHS 4.80% 8 MONTHS *Conditions apply. FirstOntario's 24-month Escalator GIC* Market-leading rates and flexibility make it a smart way to save. Let's do this together. Call or visit your local branch or learn more at FirstOntario.com/Escalator 1-800-616-8878FirstOntario.com Contact@FirstOntario.com WATCH YOUR RATE RISE & YOUR MONEY GROW! Contributing to a Regis- tered Retirement Savings Plan (RRSP) can be good, but the same can be said of a Tax-Free Savings Account (TFSA). How to choose between the two depends on your cir- cumstances. RRSP contributions are tax deductible so the higher your tax bracket the moreyour tax bracket the morey beneficial it is to make a con- tribution. If your income is increasing fairly significant- ly it might be beneficial to accumulate RRSP contribu- tion room to be used later when tax savings would be more significant. The length of time you plan to invest plays an im- portant role. If there is a chance you would want to withdraw funds, then a TFSA would be more attrac- tive. Funds withdrawn from a TFSA are not added to your taxable income andyour taxable income andy can be reinvested later with no penalty. The only restric- tion is you have to wait until the following calendar year before putting withdrawn funds back in a TFSA.funds back in a TFSA.f Some Investors may be in the enviable position of be- ing able to contribute to both a TFSA and an RRSP. If this is the case and you are a long-term investor, you have an important decision to make on what type of in- vestments should be held in either of these two separate accounts. If you plan to hold both fixed income and equity in-fixed income and equity in-f vestments it is often a good idea to hold the interest- bearing investments from fixed income in an RRSP.fixed income in an RRSP.f It can make sense from a tax perspective to hold equi- ties in a TFSA. The reason has to do with how the funds are treated when withdrawn from either of these two ac-from either of these two ac-f counts. TFSA funds withdrawn are not subject to income tax. The strategy in this case is to have the likely more profitable equity invest- ments accumulating within the TFSA. Investors have two at- tractive options on how to in- vest funds - a TFSA and an RRSP. Peter Watson, of Peter Watson Investments MBA, CFP®, R.F.P., CIM, FCSI offers a weekly financial planning column, Dollars & Sense. He can be contacted through www.peterwat- soninvestments.com. OPINION RRSP OR TFSA CONTRIBUTION? BOTH ARE ATTRACTIVE INVESTING OPTIONS, WRITES PETER WATSON PETER WATSON Column SIGN UP FOR OUR WEEKLY NEWSLETTER AT INSIDEHALTON.COM