Wealthsimple Referral for Self-Employed Canadians
No employer pension? No company RRSP match? No problem. Self-employed Canadians can build serious wealth with XEQT on Wealthsimple—and the referral bonus gives you $25 to start.
Why self-employed investors need a plan
When you’re employed, investing often happens automatically: your employer deducts pension contributions, matches your RRSP, and you barely notice. Self-employed Canadians don’t get any of that. You’re responsible for:
- Retirement savings — No employer pension or matching
- Tax planning — You pay both employee and employer portions of CPP
- Income variability — Freelance and business income fluctuates
- Discipline — Nobody is auto-deducting investment contributions from your pay
The good news: with XEQT and Wealthsimple, you can build a system that handles all of this simply.
Account strategy for self-employed Canadians
Priority 1: TFSA
Max your TFSA first. Why?
- Flexible withdrawals — You can pull money out anytime without tax, which matters when income is variable
- No impact on income-tested benefits — TFSA withdrawals don’t affect GST/HST credits or other benefits
- Contribution room carries forward — If you have a slow year, unused room doesn’t disappear
- Withdrawn amounts restore the following year
For self-employed Canadians with unpredictable income, the TFSA’s flexibility is more valuable than the RRSP’s tax deduction.
Priority 2: RRSP (strategically)
The RRSP makes sense for self-employed Canadians when:
- Your income is above ~$55,000/year (higher marginal tax bracket makes the deduction more valuable)
- You want to reduce your net income for tax purposes
- You have a predictable high-income year and want to defer taxes
Your RRSP contribution room is 18% of your previous year’s earned income, up to the annual limit. Self-employment income counts as earned income for RRSP purposes.
Priority 3: Personal (non-registered) account
Once TFSA and RRSP are maxed, a non-registered account is your next step. XEQT in a non-registered account generates Canadian-eligible dividends and capital gains—both taxed at preferential rates compared to interest income.
Setting up the system
Step 1: Claim your referral bonus
- Open a Wealthsimple account using this referral link
- Start with a TFSA (most flexible for variable income)
- Complete verification and fund your account
- Get your $25 bonus and buy XEQT
Step 2: Automate based on your income pattern
If you have regular clients/retainers:
- Set up recurring deposits that match your billing cycle
- Example: $500 on the 1st and 15th of each month
If your income is project-based:
- Set a percentage rule: invest 15-20% of every invoice payment
- Transfer manually after each payment, or batch monthly
If income is highly variable:
- Keep 3-6 months of business and personal expenses in cash
- Invest everything above that threshold monthly
Step 3: Tax-loss harvesting (advanced)
Self-employed Canadians often have complex tax situations. In a non-registered account, you can sell XEQT at a loss to offset capital gains from other investments or business asset sales. (TFSA and RRSP don’t benefit from this—gains and losses inside registered accounts don’t affect your taxes.)
How much should you invest?
Without an employer pension, you need to save more aggressively than salaried workers:
| Annual self-employment income | Suggested monthly investment | Account priority |
|---|---|---|
| $30,000-$50,000 | $300-$500 | TFSA first |
| $50,000-$80,000 | $500-$1,000 | TFSA then RRSP |
| $80,000-$120,000 | $1,000-$2,000 | TFSA + RRSP |
| $120,000+ | $2,000+ | TFSA + RRSP + non-registered |
These are rough guidelines. The key is consistency over perfection.
The self-employed advantage
Here’s the silver lining: self-employed Canadians who invest consistently often end up ahead of salaried workers with employer pensions. Why?
- You control your investments — XEQT at 0.20% MER beats most pension fund fees
- You keep the full upside — No pension formulas capping your growth
- Tax flexibility — You choose when to contribute, deduct, and withdraw
- No vesting period — Your investments are yours from day one
Start Your Self-Employed Investing Plan
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