The Tax-Free Savings Account (TFSA) and Registered Retirement Savings Plan (RRSP) are two incredible platforms for Canadians to use for future investment. The issue is that it can be incredibly difficult if you don’t exactly have a lot of cash on hand to invest!
That’s why today we’re going to look at how to invest in the TFSA and RRSP, no matter your income level. Furthermore, we’ll look at why investing in Fortis (TSX: FTS), goeasy (TSX: GSY), and BMO S&P 500 Index ETF (TSX: ZSP) are three TSX stocks that work no matter what you make.
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The TFSA and RRSP
Before you even start to invest, it’s important to understand both the contribution limits and eligibility of both the TFSA and RRSP. So, let’s look at both. For the TFSA, the contribution limit in 2025 is $7,000. However, unused contributions from the previous years can be carried forward. Therefore, you can create a large portfolio of tax-free growth from investments, with withdrawals making their way around taxes. This leaves it versatile and ideal for short- or long-term investment goals.
The RRSP contributions are deducted from taxable income, up to 18% of your previous year’s income or a max of $29,210 as of 2025, whichever is lower. This will be outlined in your Notice of Assessment from the Canada Revenue Agency. RRSPs are ideal for retirement savings, deferring taxes until withdrawal, which usually occurs during retirement. That’s perfect, as you’ll likely be in a lower tax bracket.
Look at the risk
After knowing the rules, it’s important to understand the amount of risk you can tolerate. This is where your own personal income comes into play. You may have to be more conservative if you’re low-income or nearing retirement. If you’re higher income and can put about 5% of your investment in something fun, then that’s a bit more aggressive an approach. Just tailor your portfolio to your risk tolerance.
You’ll also need to regularly review to make sure your investments are meeting your goals. These goals should have clear time horizons and numbers attached, such as retirement goals or a home. This can influence what you invest in as well as your strategy.
Three stocks that work
Now, let’s look at the stocks. All three of these choices offer up dividends that can be reinvested quarterly or annually to help bring you closer to your goals. Furthermore, these are all stable investments with plenty of room to run. For instance, Fortis is known for its stability as a regulated utility structure. It holds a 3.62% dividend yield, making it ideal for conservative investors seeking steady income and low volatility in share price.
Meanwhile, goeasy is a growth-oriented stock, which brings the price-to-earnings (P/E) ratio up a bit. However, it also holds a sustainable dividend. Furthermore, it has seen strong revenue growth from lending operations. It’s therefore ideal for those looking for higher returns and willing to accept volatility over a few years.
Finally, a solid core asset is the ZSP. This exchange-traded fund (ETF) offers diversified exposure to the S&P 500, therefore providing you with a balance of the entire U.S. equities market at a low management expense ratio (MER) of 0.09%. So, if you’re on the conservative side, this is a prime option.
Bottom line
All three of these stocks are ideal for investors looking to create income, see growth, and maintain stability — all the while bringing you closer to whatever goal you have in mind. Combining them in a TFSA or RRSP is a balanced approach to building income, no matter your income levels or goals. However, as always, it’s crucial to meet with your own personal finance advisor and regularly adjust to make sure you’re still meeting those goals.
