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Enoch Omololu

Enoch Omololu is a personal finance expert and a veterinarian. He has a master’s degree in Finance and Investment Management from the University of Aberdeen Business School (Scotland) and has completed several courses and certificates in finance, including the Canadian Securities Course. He also has an MSc. in Agricultural Economics from the University of Manitoba and a Doctor of Veterinary Medicine degree from the University of Ibadan. Enoch has a passion for helping others win with their personal finances and has been writing about money matters for over a decade. His writing has been featured or quoted in The Globe and Mail, Winnipeg Free Press, Wealthsimple, Financial Post, Toronto Star, Credit Canada, MSN Money, National Post, CIBC, and many other personal finance publications.

His top investment tools include Wealthsimple and Questrade. He earns cash back on purchases using KOHO, monitors his credit score for free using Borrowell, and earns interest on savings through EQ Bank.

14 thoughts on “Registered vs. Non-Registered Investment Accounts: Factors To Consider”

  1. Hi Enoch, if one has never invested outside of registered accounts, is there any reason to worry about ACB? As you said, that looks like something that would get out of hand pretty quickly. What happens when you convert an RRSP to a RIF? Still no issues? And secondly, assume one retires before 65. If RRSP money were to be withdrawn from the account to make up a shortfall in a time of need, would that result in needing to suddenly figure out ACB?
    It seems most questions plunked into google eventually lead to here, so, well done.

  2. Hi Enoch, I hope all is well. I’m trying to figure out the most tax efficient place to hold US stocks and/or US ETFs. I make under $50,000 per year and through my research I’ve found that it’s best not to contribute to an RRSP at this point. But many people say that holding US stocks/ETFs in one’s RRSP is a good strategy because of the exemption on withholding taxes. But, some people are saying that you can get US withholding taxes back if you hold the stocks in a non-registered account? Is this true? Thanks for your help!

  3. I thank you because the article has told me something new. I really didn’t know this ……………. The way you explain is very easy to understand.

    • @David: Awesome – happy to hear!

  4. Is there any benefit of starting to fund a non-reg account prior to maxing out RRSP? Let’s assume TFSA is maxed out and the person is mid 30s with 150k income.

  5. Hi Enoch,

    Great website, a lot of useful info and tips.

    I’d be interested to know your thoughts on non-registered vs rsp for a medium term investment. Myself and my spouse have maxed out our tfsa’s and make regular rsp contributions for longer term investment.

    We have additional savings (just under 100k) beyond rainy day cash which we are thinking of using for an investment property purchase or business venture within the next 5 years.

    We were considering putting these funds in a non-reg account as an rsp would incur withholding on and withdrawal. Our income bracket is similar so the investment would be split down the middle in two joint margin accounts.

    Would you give your thoughts on whether you agree this would be the best option or should we be considering a different strategy?


    • @Bryan: If I was in your shoes, I would consider using a non-reg account as you have mentioned. And, for a 5-year or less project in the current climate, I would also probably go for a GIC or other money-market instrument. However, both the RRSP and non-reg would result in taxes. Taxes on the non-reg would be annual, while RRSP taxes will be due following withdrawal. There may be some tax advantages for the different account types depending on the assets you invest in and your marginal tax rate, but that would take a bit more digging into the numbers.

  6. Hi Thank you for your article, I am learning a lot from here. I am 47 years. And Max out RRSP and TFSA. And I am keeping $50000+ under saving account. I would like to move this money to somewhere efficient investments.
    ****1) For example,if I open Questrade account, and buy monthly Canadian INDEX ETF. ( dividend will not with DRIP) and not sell all year. Only I have to claim is total dividend for a year?
    ****2) If I sell after 20 years later, I have to claim that balance of total 20 years investments ?(Sold amount – Buy cost for Total 20 years amount, is this call Capital Gain) ?
    **** 3) Can you please recommend any ETF for long term investment apply tax credit ?

    Thank you so much for taking the time for sharing your knowledge with us.


  7. I came across your site and learned a lot about tax benefits on investments in a non-registered account. I heard that dividends for the amount of less than $48,000 in a non-registered account is tax free for individuals who do not have an income, Can you please comment if this statement is accurate or not? Thanks in advance.

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