It depends on what you are investing in.. RRSPs have taxes deferred until you withdraw but you don't need to pay US Cap gain (30%) because of tax treaty.
TFSA you don't need to pay any Canadian taxes but you need to pay US Cap gain. I rather max out my TFSA over maxing RRSP if I am fiscally limited. Also TFSA doesnt have time limit when you need to draw down and all that bs. I personally find the increase limit a nice bonus.
Remember even as a student you might not max out the TFSA.. the TFSA contribution limit increases every year and is retroactive so say if you earn 150k per year when you graduate, you can easily back fill.
If leveraged well, people can make a good deal of money tax free using tfsa.. especially this year with market like gang busters you can get an easy 20% gain. As long as you don't take the S too literally and don't fall into the 1.75% bonus savings like most banks are hawking.
We are in a recession.. see the other thread.
Quote:
Originally Posted by AstulzerRZD
In practical application, shouldn't most people be maxing out their RRSP before touching their TFSA? Even as a student who pays limited taxes, the higher TFSA contribution limits isn't too valuable of a tool to me.
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