What's the difference between keeping money in a savings account and a TFSA? You don't have to report the interest earned in the savings account anyways, right?\
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Originally Posted by Tapioca
It's hard to not get sucked into the hype around RRSPs. I had a meeting with my mortgage manager over the weekend and she chatised me for not contributing to my RRSP. Then I told her that I have a defined benefit pension and she later backpedalled and said that RRSPs aren't for everyone. Her ex-husband is a public servant and she flat out stated that his pension is worth a million bucks (of course, she's entitled to half of that.)
It pains me to say this, but I think I'm going to pay taxes this year instead of contributing to my RRSP. At my income level, I would have to pay nearly 5 grand to off-set any taxes that I owe. I want to preserve my emergency fund and if I were to make an RRSP contribution this year, I would have to put a serious dent into that fund. Some food for thought for others who may be in my situation (or who spent beyond their means this year.)
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IMO you should buy enough RRSP to not pay tax. Once you pay tax to the government, the money is gone and can never be retreived again. At least once you have your money in your RRSP, you can withdraw if there ever is an emergency. If not, then let it sit.
To me, RRSP saves us from giving money to the government and it's stupid not to contribute if you owe tax this april.