Wealthed Up Internal Reference
Quick Reference

Where Should Your Money Go?

Every vehicle, side by side — tax treatment, limits, and key rules. Filter by stage or outcome. Hover any card for details.

Favourable
Neutral
Punitive
Stage
Tax

Personal Investing Options

7 vehicles
RRSP
Registered Retirement Savings Plan
🏦
In
Growth
Out

Tax deduction going in, tax-deferred growth — but 100% taxable as income on withdrawal.

Limit 18% of income, up to ~$31,560/yr (2024)
Out All withdrawals taxed as 100% income — can be punitive in retirement
Switch Can move between investments inside with no immediate tax hit
Note Beneficiary designation available. RESPs/RDSPs also receive government grants.
FHSA
First Home Savings Account
🏠
In
Growth
Out

The rare triple-win: deduction in, tax-free growth, tax-free out — if used for a first home.

Limit $8,000/yr, $40,000 lifetime
Out Tax-free if used for qualifying first home purchase
Rollover Unused funds can roll into RRSP/RRIF without using contribution room
Note Relatively new (2023). Only for first-time buyers.
⭐ Triple Tax Advantage
TFSA
Tax-Free Savings Account
✨
In
Growth
Out

No deduction in, but completely tax-free growth and withdrawal. Greatest thing since sliced bread.

Limit ~$7,000/yr per Canadian adult (2024). Room accumulates from age 18.
Out 100% tax-free at any time, for any reason
Switch Can move investments inside with no tax consequences
Note Beneficiary designation available. Withdrawn room re-added next calendar year.
⭐ Most Flexible Vehicle
Non-Registered
Open / Taxable Account
📈
In
Growth
Out

Unlimited room, but income is taxed annually — between 50% and 100% taxable depending on the type.

Limit No limit on contributions
Tax Interest: 100% income. Dividends: grossed-up. Capital gains: 50% included.
Switch Switching investments triggers deferred taxes — plan carefully
Note Can be held jointly. Some accrual taxes payable annually regardless of withdrawal.
Principal Residence
Primary Home
🏡
In
Growth
Out

Gains are entirely tax-free under the principal residence exemption — for now.

Gain 100% tax-free under principal residence exemption
Switch Moving between residences does not trigger tax
Note Joint ownership available. Only one property designated per family unit per year.
Risk Government has potential to change exemption rules — track policy shifts.
Real Estate
Investment Property
🏢
In
Growth
Out

Capital gains treatment on sale — but depreciation recapture is 100% taxable. Leverage can amplify both gains and tax.

Interest May be deductible if property earns income. Vacant land: not deductible.
Gain Typically capital gain (50% included). Recapture of depreciation is 100% income.
Note Joint ownership possible. Rental income 100% taxable as income.
Risk Illiquid. Concentration risk. Management burden.
Insurance
Permanent Life / Alt. Investment
🔒
In
Growth
Out

Cash values grow tax-free. Death benefit paid tax-free to beneficiaries. Values only ever go up.

Growth Tax-sheltered inside the policy. Cash values are guaranteed to increase each year to age 100.
Access Cash values accessible tax-efficiently via policy loans or withdrawals
Switch Universal life: switch between funds inside with no tax triggered
Limit Determined by policy size and premium capacity — not a government limit
Benefit Death benefit 100% tax-free. Works as fixed income alternative with guaranteed upside.
💡 The Alternative Investment

Corporate Investing Options

3 vehicles

Within a corporation, options narrow significantly. Passive income rules add pressure — insurance becomes increasingly strategic.

Non-Registered
Corporate Open Account
🏛️
In
Growth
Out

Available, but passive income rules bite above $50K/yr — and getting money out means another layer of personal tax.

CDA Tax-free portion of capital gains credits the Capital Dividend Account — flows tax-free to shareholders
RDTOH Refundable Dividend Tax on Hand returns some dividend tax when taxable dividends are paid out
Risk Passive income over $50K/yr reduces the small business deduction on active income dollar-for-dollar
Exit Withdrawing retained earnings through dividends triggers personal tax — total corporate + personal rate can exceed 70%
Real Estate
Corporate-Held Property
🏗️
In
Growth
Out

CDA credit on the gain is a plus — but passive income rules and double taxation on exit are significant headwinds.

CDA Tax-free portion of capital gain credits the CDA for tax-free dividend to shareholders
Passive Rental income counts as passive — erodes the small business deduction if over $50K
Exit Getting equity out of the corp still requires paying personal tax on dividends or salary
Note Can work well for building long-term equity — less efficient for income generation inside a corp
Insurance
Corporate-Owned Life Insurance
🔐
In
Growth
Out

The standout option for trapped corporate surplus. Tax-free growth, tax-free death benefit, CDA credit on payout.

Growth Cash values grow tax-free inside the corporation
Death Benefit paid tax-free to corp. Amount above ACB credits the CDA — flows tax-free to shareholders
Strategy Corporate Estate Bond: ideal for surplus the owner will never personally spend
Retirement CIRP: cash values accumulate tax-free, then accessed to supplement retirement income
Note Federal government has not targeted corporate life insurance — remains a preferred planning tool
💡 Best for Trapped Surplus

Internal reference only · Not for client distribution · For educational purposes · Always confirm current limits and rules with applicable legislation