What is what? RRSPs versus TFSAs

How do you know what to invest your money in? There are so many acronyms, they can be confusing! Here's some help:

RRSP - Registered Retirement Saving Plan - You do not have to pay tax on the money as it goes in. So it is used as a tax deduction (deadline for 2009 tax year is March 1, 2010), but when the funds come out at retirement you must pay tax on them at that time.

TFSA - Tax-Free Savings Account - The newest kid on the block. Any interest earned on your principal is not taxed. It does not act as an immediate tax break but it saves you increasing your income on the revenue earned on your investments.

Under each of the umbrellas of RRSP or TFSA you can have variable savings (completely open and accessible at any time), Guaranteed Investment Certificates (GICs), or mutual funds. There are so many options, how do you figure out which one is right for you? Be best answer is to talk to someone who knows, preferably a Certified Financial Planner.

In my branch in Stratford our Certified Financial Planner is Nancy. Nancy provides us her expert knowledge on what is best for us based on your risk tolerance and what the funds will be used for. My friend Nancy works on salary - not commission - many CFPs only work on commission so make sure you are getting the most for your money!