Quote:
Originally Posted by lowside67
There is a scary amount of misinformation in this thread. RRSPs and TFSAs are powerful tools for minimizing your tax paid over the long run but particularly RRSPs require some strong planning as they are not particularly flexible and can be expensive to withdraw if you need them in an emergency. A financial planner at your bank or financial institution will review your plan and help you understand what you need for free or at a minimal cost and it's worth doing.
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The TFSA is such a powerful investment vehicle that the federal government had to reduce the limit because of the potential lost revenue.
Generally, if you're young, you want to save using your TFSA. Max out your TFSA each year, and use your RRSP room strategically. If you have a pension, it makes no sense to contribute to an RRSP before your max out your TFSA until you leave your company/organization offering that pension.