The problem with non-registered accounts
Many Canadians accumulate wealth in non-registered accounts—whether through savings after maxing out RRSPs, inheritances, or simply because they haven’t been strategic about account types. While non-registered accounts are flexible, they come with a major drawback:
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Investment growth is taxable each year. Interest, dividends, and capital gains are all subject to tax.
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Over decades, even modest annual taxes on growth can significantly reduce net wealth.
This is where Advisors can add enormous value. By helping clients gradually move non-registered investments into a Tax-Free Savings Account (TFSA), Advisors can reduce tax drag, improve after-tax returns, and strengthen long-term financial outcomes.
And now, with Snap Projections’ new automatic TFSA top-up feature, modelling this strategy for clients is faster an easier than ever.
Why TFSAs can be a superior option
Before diving into strategy, let’s revisit why TFSAs are such a powerful tool:
Tax-Free Growth – Unlike non-registered accounts, growth inside a TFSA is never taxed.
Tax-Free Withdrawals – Money can be withdrawn at any time, without tax consequences.
Contribution Flexibility – Withdrawals create future contribution room, making it easy to “recycle” funds.
Government Benefit Protection – TFSA withdrawals don’t count as taxable income, so benefits like OAS or GIS aren’t clawed back.
For clients holding taxable investments, moving funds into a TFSA is one of the simplest ways to preserve wealth.
As always, there is not one-size-fits all solution here, so it’s important to highlight the importance of personalized advice versus blanket advice. What is optimal and ideal for one person may not be optimal or ideal for the next.
The Advisor’s role: showing the impact
Clients often understand that TFSAs are “tax-free,” but few appreciate just how significant the difference can be over time. That’s where Advisors come in.
With Snap Projections, Advisors can:
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Model the status quo: Keep funds in a non-registered account, showing the impact of annual taxes on growth.
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Model TFSA top-ups: Move available funds into the TFSA each year until contribution room is filled.
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Compare long-term results: Show how the tax-free compounding of the TFSA leads to substantially higher net wealth.
This side-by-side comparison turns a general recommendation into a personalized, data-driven insight clients can see and understand.
Watch the video to see this in action
Example: moving non-registered savings into a TFSA
Imagine a client with $60,000 in a non-registered account earning a 5% annual return. They also have unused TFSA contribution room.
Using Snap Projections, the Advisor can show two scenarios:
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Scenario A (Do Nothing): Keep all funds in the non-registered account. Annual investment growth is taxed, reducing overall returns.
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Scenario B (TFSA Top-Ups): Move $7,000 per year (or the current annual limit) into the TFSA until room is maxed. Growth inside the TFSA compounds tax-free.
Over 20 years, the difference is striking. Even without changing the investment itself, the client ends up with significantly more wealth—simply by shifting assets into a tax-efficient account.
Snap’s automatic TFSA top-up feature
Traditionally, modelling TFSA contributions has required manual adjustments each year—a time-consuming process prone to errors. Snap’s new automatic TFSA top-up feature changes the game:
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Automatically identifies contribution room and allocates funds each year.
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Seamlessly moves money from non-registered accounts into the TFSA.
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Updates projections instantly, so Advisors can show long-term impacts in real time.
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Reduces manual work, allowing Advisors to focus on the client conversation instead of data entry.
This automation makes it effortless to illustrate the benefits of non-registered-to-TFSA strategies—and ensures opportunities are never missed.
How this improves client outcomes
The benefits of moving non-registered assets into a TFSA go beyond simple tax savings:
Maximizes After-Tax Wealth
Clients retain more of their investment growth over time.
Provides Flexibility
Funds remain accessible in emergencies, unlike RRSPs, which come with tax consequences for withdrawals.
Simplifies Tax Reporting
By reducing non-registered holdings, clients deal with fewer T5 and T3 slips each year.
Improves Retirement Planning
TFSA withdrawals won’t push clients into higher tax brackets or affect government benefits.
Strengthens Advisor Value
When Advisors highlight these advantages with clear, customized projections, clients see firsthand how strategic planning improves their financial future.
Beyond contributions: using Snap for deeper insights
The automatic TFSA top-up feature is just one way Snap Projections helps Advisors provide more value. By integrating this tool into broader planning, Advisors can also:
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Stress test plans under different return or inflation assumptions.
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Compare retirement income strategies, balancing RRSP withdrawals, TFSA use, and non-registered accounts.
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Highlight tax efficiency, showing how different account types affect long-term outcomes.
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Personalize recommendations so every client leaves with advice tailored to their circumstances.
This holistic approach elevates the Advisor’s role from investment manager to trusted planner.
Why clients respond positively
When Advisors show clients the benefits of moving funds from non-registered accounts into a TFSA, reactions are often immediate:
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Clients are relieved to see a clear path to reducing taxes.
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They’re motivated by the tangible improvement in wealth outcomes.
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They appreciate the simplicity and flexibility of the strategy.
And because Snap Projections delivers these insights visually and in real time, the conversation feels collaborative, not abstract.
Efficiency for Advisors, confidence for clients
For Advisors, efficiency matters. Every hour spent on manual calculations is an hour not spent building client relationships. Snap’s automation delivers:
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Time savings by removing repetitive data entry.
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Error reduction by eliminating manual updates.
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Professional polish with visuals that clients immediately understand.
For clients, the result is confidence. They leave the meeting knowing they’re not just saving and investing—they’re doing so in the smartest, most tax-efficient way possible.
A simple shift with big rewards
Sometimes, the most impactful financial strategies aren’t complicated. Moving money from non-registered accounts into a TFSA is straightforward, but the long-term benefits can be profound.
With Snap Projections’ automatic TFSA top-up feature, Advisors can model this strategy quickly, clearly, and convincingly. The result is less tax, more growth, and better outcomes for clients—along with stronger trust and deeper engagement for Advisors.
