TFSAs or RRSPs? Which Way are Canadians Leaning?

TFSAs or RRSPs – which make more sense?  As a finance professional, you’re probably asked this question frequently.  And, with tax season once again upon us, a lot of people are wondering what most Canadians are doing these days.  How do you get your response to this seen by as many of your clients as possible?  Blog about it:

A recent BMO study maintains that more and more Canadians are looking into TFSAs.  According to the study, 67% of Canadians currently hold an RRSP; while 39% have a TFSA.  Taking into consideration that TFSAs have been around for a few years (they were first introduced in 2009), that’s a fair percentage!

The BMO study furthermore concluded that although more of us still hold RRSPs, if handed a limited sum of money to invest, 42% of Canadians said that they would invest the money into a TFSA, while only 37% said that they would go with an RRSP.

 

The reasoning behind this lean toward TFSAs?  36% said that the tax-free aspect was what they found most attractive, and 20% cited the fact that the money could be withdrawn at any time without penalty.

And, while making an RRSP contribution is tax deductible, it must be taken into account that when the money is finally withdrawn, it will be taxable. 

Following is a table (similar to one that the federal government created when TFSAs were first introduced) to further illustrate TFSAs vs. RRSPs, borrowed from The Wealthy Barber Returns: Significantly Older and Marginally Wiser, Dave Chilton Offers His Unique Perspectives on the World of Money By David Chilton. Copyright © 2011 by David Barr Chilton, released September 2011.

	TFSA	versus RRSP
Pre-tax Income	$1,000	$1,000
Tax	$ 400	N/A
Net contribution	$ 600	$1,000
Value 20 years later @ 6% growth	$1,924	$3,207
Tax upon withdrawal (40%*)	N/A	$1,283
Net withdrawal	$1,924	$1,924
* the marginal tax rate — the rate of tax charged on the last dollar of income

Bottom line:  Investing and saving are a crucial aspect of our lives.

A final thought from David Chilton:

“Reminders: (1) If you go the RRSP route, don’t spend your refund; (2) If you go the TFSA route, don’t spend your TFSA; (3) Whatever route you go, save more!”

6 WAYS TO A MORE EFFECTIVE FACEBOOK PAGE FOR YOUR BRAND

Congratulations to you if you’ve already created a Facebook page to lend further exposure to your brand.  You’re well aware of the benefits and advantages Facebook pages have to offer and making use of a Facebook page, as you know, is one of the smartest things you can do for your business.   Here are a few tips to help optimize your brand’s page and to let you effectively engage and maintain significant dialogue with your fans & clients:

1.  Develop a distinctive voice for your brand.  Consistency is key here – you want people to know who you are and what your brand stands for.  It’s important to adopt a voice that best represents your brand and to sustain that voice.  I’m not suggesting that you should never try to mix it up a bit and be predictable to the point of being boring, but people like to be able to identify with something, so let your brand speak in a voice that will enable that identification.               

2.  Never propagate the hard sell.  I’ve discussed this prolifically in previous posts.  Social media is not about blatantly advertising to your fans.  It is all about engagement and interaction.  And, that’s what your brand’s Facebook page is for – to connect with your fans and clients and to be accessible to them.

3. Promote dialogue and discussion by posing questions and encouraging fan involvement.  What better way is there to improve upon and expand your brand than to ask your audience for their feedback?  The inter-connectivity of your brand’s page makes this simple and straightforward.  Ask questions; ask for feedback and commentary.  People love to share their thoughts and opinions, and again, who better to listen to than the very people you are trying to engage. 

4.  Never inundate your fans.  The idea is to engage and enlighten, not to overwhelm.  Of course you want to post on a regular basis to maintain your audience’s interest, but nobody wants to be flooded with a hundred posts a day.  You’ve heard the expression “too much information”.  One or two posts a day will suffice, however, if you receive a comment or are asked a direct question, an imminent response is always warranted.

5. Post lots of photos, videos and polls.  Informative, thought-provoking posts are great!  But, human beings are, by nature, visual creatures.  If you really want to step it up a notch, ensure that you post photos and videos to enhance the visual aspect of your Facebook page - makes things more interesting, enticing and fun.  And, polls are a very effective way of fostering audience participation and garnering information.  It doesn’t always have to be business related either – sometimes a fun poll can lighten the mood a bit and let your fans know that you do have a human side – which leads me to the next point…

6. Be personable and show you’re human.  Social media have significantly altered the way businesses interact with their clients.  They have allowed for, well, just what the name indicates – ‘social’ behavior.  In enabling two-way communication between business and client, social media have broken down the barriers to allow for unprecedented personal, individual attention and interaction.  Take advantage of this and talk to your fans on a human level, the way social media have intended.  Get more personal with people – ask more personal questions – get to know them and what makes them tick.  Wish clients a happy birthday or congratulate them when their children are born!  A Facebook page not only allows for, but begs this type of interaction.   It all goes to customer service & satisfaction and developing a loyal fan base!