Quote:
Originally Posted by mr_chin
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?\
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.
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If I had an emergency, I would still be taxed if I took the RRSP out (unless I lost my job and wouldn't be expected to work for over a year.) RRSP are tax deferrals, not tax avoidance instruments.
I prefer to have a liquid emergency fund. Sure, I have home equity, but I'm not comfortable tapping into that.