Now you’ll connect your long-term strategy to concrete actions in Wealthsimple.

9.1 Automating Contributions

To make long-term investing truly “set and semi-forget”:

• Set up recurring transfers from your bank to Wealthsimple (e.g., every payday).
• In a self-directed account, set a reminder to place your ETF or stock buy each month; in some managed setups, you can automate the investing step too.

You can:

• Aim to fill TFSA room first for long-term growth, then add RRSP contributions based on your income and tax bracket.
• Increase your monthly contribution when your income rises or when you pay off other debts.

Consistency matters more than perfection.

9.2 TFSA and RRSP for Maximum Long-Term Benefit

Linking tax and long-term strategy:

• TFSA
  • Ideal for growth-oriented ETFs and stocks where you want tax-free gains and dividends.
  • Great for long-term goals with flexibility (e.g., future “work optional” lifestyle).
• RRSP
  • Ideal for long-term retirement, especially if you’re in a higher tax bracket now.
  • US-listed ETFs (like US S&P 500 ETFs) can be more tax-efficient in RRSP because they may avoid US withholding tax on dividends when held properly.

A simple pattern for many Canadians:

• Use an all-in-one ETF in TFSA for broad long-term growth.
• Use RRSP for retirement-specific holdings and tax optimization (possibly including US ETFs).

Wealthsimple’s account pages and guides compare TFSA vs RRSP vs FHSA trade-offs; revisit them yearly as your situation changes.

9.3 Dividend Reinvestment Strategies

For long-term compounding:

• Turn on dividend reinvestment (DRIP) where available, or: