Once you have determined your investment goals and level of involvement, the next step is to optimize registered and non-registered accounts for your overall financial strategy.
Each registered account has its own fiscal advantages: tax deferral, tax-free income and capital gains, education subsidies are some examples. These accounts have limitations on withdrawals and deposits that are determined by the federal and provincial governments. In the case of non-registered accounts, only the annual value of realized income (interest and capital gains) in those accounts must be reported in your tax return. These therefore allow for more freedom as to amounts deposited or withdrawn, and in the timing of these transactions.